In a training scenario, the file has borrower statements but no verified ability-to-repay analysis. What action best follows the rule?
Correct Answer
D) 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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