A mortgage file is paused during a secondary-market screen because of TILA Qualified Mortgage. Which answer should apply the requirement without relying on borrower preference?
Correct Answer
D) 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
A mortgage team asks a branch supervisor about TILA APR and finance-charge rules during a renewal checklist. Which answer should guide the file?
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