Financing

Financing Practice Question

The ability-to-repay rule under Dodd-Frank requires lenders to:
A
Verify borrowers have sufficient assets only
B
Make a good-faith determination that borrowers can repay the loan
C
Require 20% down payment on all loans
D
Only lend to borrowers with credit scores above 700
Explanation

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.

More Financing Questions

All Topics

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Get Started Free