A mortgage file is paused during a policy refresh meeting because of TILA Qualified Mortgage. Which answer should explain the required action to the team?
Correct Answer
D) Avoid QM features such as negative amortization or interest-only terms
ATR/QM rules require verified repayment ability and restrict risky QM features. The best answer is "Avoid QM features such as negative amortization or interest-only terms".
Why This Is the Correct Answer
ATR/QM rules require verified repayment ability and restrict risky QM features. The best answer is "Avoid QM features such as negative amortization or interest-only terms".
More Federal Laws Questions
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Previous Question
In a closing-readiness check, a quality-control reviewer sees facts tied to TILA QM Safe Harbor. What should the file reflect?
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The loan team compares the file facts with HOEPA High Cost Mortgage Restrictions during an underwriting condition review. Which conclusion is accurate?