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A policy analyst is training staff on ATR/QM Rules using a training scenario. Which statement is accurate?

Correct Answer

A) Recalculate ratios when debts or value change

LTV and DTI calculations support repayment and collateral analysis. The best answer is "Recalculate ratios when debts or value change".

Answer Options
A
Recalculate ratios when debts or value change
B
Apply a different loan-program rule without checking the file facts.
C
Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan.
D
Use the same treatment for all mortgage products without comparing program requirements.

Why This Is the Correct Answer

LTV and DTI calculations support repayment and collateral analysis. The best answer is "Recalculate ratios when debts or value change".

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