Financing
Financing Practice Question
The ability-to-repay rule under Dodd-Frank requires lenders to:
A
Verify borrowers have sufficient assets onlyB
Make a good-faith determination that borrowers can repay the loanC
Require 20% down payment on all loansD
Only lend to borrowers with credit scores above 700Explanation
The ability-to-repay rule requires lenders to make a reasonable, good-faith determination that a borrower can repay the loan. Lenders must consider income, assets, employment, credit history, debt-to-income ratio, and other factors before making a loan.
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