During a borrower intake review, the file reviewer encounters a TILA Higher Priced Mortgages issue. Which response should decide how the file should be documented?
Correct Answer
B) 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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during a HPML requirements review, a renewal specialist identifies an issue involving HPML requirements. Which response is most compliant?