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A quality-control reviewer flags a case because the file has borrower statements but no verified ability-to-repay analysis. What correction is appropriate?

Correct Answer

B) 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".

Answer Options
A
Use bonus income without verifying a history or likelihood of continuance.
B
Verify repayment ability before consummation using reliable records
C
Treat temporary overtime as stable income without support in the file.
D
Exclude a verified loss from qualifying income because the borrower prefers the higher figure.

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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