A borrower-facing employee is unsure what to do when the file has borrower statements but no verified ability-to-repay analysis. What is the correct response?
Correct Answer
C) Verify repayment ability before consummation using reliable records
Lines 207-214; 12 CFR 1026.43(c)(1). The ATR rule requires a pre-consummation determination based on reliable information, not unsupported statements or collateral alone. Therefore, the correct response is "Verify repayment ability before consummation using reliable records".
Why This Is the Correct Answer
Lines 207-214; 12 CFR 1026.43(c)(1). The ATR rule requires a pre-consummation determination based on reliable information, not unsupported statements or collateral alone. Therefore, the correct response is "Verify repayment ability before consummation using reliable records".
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