Under the Ability-to-Repay rule, which of the following factors must a creditor consider when determining a consumer's ability to repay a mortgage loan?
Correct Answer
A) Current or reasonably expected income or assets
Under 12 CFR 1026.43(c)(2), creditors must consider eight specific factors including current or reasonably expected income or assets. Credit scores, LTV ratios, and property values are not among the required ATR factors.
Why This Is the Correct Answer
Under 12 CFR 1026.43(c)(2), creditors must consider eight specific factors including current or reasonably expected income or assets. Credit scores, LTV ratios, and property values are not among the required ATR factors.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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