SOFE Exam AFE Topic 2 Question 99 Discussion

Actual exam question for SOFE's AFE exam

Question #: 99
Topic #: 2

[All AFE Questions]

Financial Statements provide additional valuable information on the loans. Some of the more significant information provided includes EXCEPT:

AThe valuation of the mortgage loan portfolio, including a description of the valuation basis for mortgage loans and income recognition

BThe recorded investment and interest past due on mortgages with interest more than 90 days past due

CThe recorded investment and number of mortgages on which interest has been reduced, and the percent the interest was reduced

DDisclosures of impaired loans: The total recorded investment in impaired loans at the end of each period

Show Suggested Answer

Suggested Answer: B

by Tanja at Apr 29, 2025, 08:45 PM

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Olive

2 days ago

I think the answer is B) The recorded investment and interest past due on mortgages with interest more than 90 days past due, as it gives insight into potential credit risks.

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Lauryn

3 days ago

I believe the answer is D) Disclosures of impaired loans, as it provides information on the total recorded investment in impaired loans.

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Queenie

4 days ago

I agree with Georgeanna, because it's important to know the valuation basis for mortgage loans.

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Yaeko

4 days ago

Option A? Really? That's like the most basic stuff they'd include in the financial statements. I'm going with C, since that's a bit more obscure information.

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Larae

8 days ago

This question is as clear as mud. I bet the exam writers were just having a bad day and decided to mess with us. Option B sounds good, but I'm not fully confident in that.

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Tyra

9 days ago

The correct answer is definitely D. Who cares about the other stuff, the most important thing is knowing how many loans are impaired, right? Wait, is that a trick question?

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Georgeanna

17 days ago

I think the answer is A) The valuation of the mortgage loan portfolio.

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Margurite

19 days ago

Hmm, I'm not sure. Option C sounds interesting, but I don't think that's the EXCEPT part of the question. Maybe the answer is A, since valuation of the loan portfolio is pretty standard information.

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Na

15 hours ago

User 2: Yeah, I agree. Option C seems like valuable information that would be included.

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Judy

3 days ago

Yeah, I agree. The other options all seem to be related to specific details about the loans.

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Lynette

5 days ago

User 1: I think the answer is A, valuation of the loan portfolio is usually included in financial statements.

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Lai

14 days ago

I think you're right, option A seems like the odd one out.

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Lisha

29 days ago

Option D seems like the most relevant information to me. Disclosures of impaired loans are crucial for understanding the overall financial health of the loan portfolio.

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Marsha

14 days ago

I think option A is also valuable, as it gives insight into the valuation of the mortgage loan portfolio.

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Ty

15 days ago

I agree, option D provides important information on impaired loans.

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Natalie

1 months ago

I think the correct answer is option B. The financial statements should provide information on the recorded investment and interest past due on mortgages with interest more than 90 days past due.

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Ines

2 days ago

User 1: I think the correct answer is option B.

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