Finance
The Dodd-Frank Act's Ability-to-Repay (ATR) rule requires Arizona lenders to:
AGuarantee the borrower will repay the loan
BMake a reasonable, good-faith determination that the borrower can repay the loan before originating it✓ Correct
CLimit interest rates on all consumer mortgages
DRequire a 20% down payment for all loans
Explanation
The ATR rule requires lenders to make a reasonable, good-faith determination of the borrower's ability to repay a mortgage based on documented income, assets, and obligations, protecting against predatory no-doc lending.
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