Finance
The Ability-to-Repay (ATR) rule requires lenders to:
AApprove all applicants who can provide a co-signer
BVerify that borrowers can repay the mortgage by considering income, assets, debts, and other financial factors✓ Correct
CApprove loans for all first-time homebuyers
DLimit mortgage payments to 30% of gross income
Explanation
The ATR rule (part of the Dodd-Frank Act) requires lenders to make a reasonable, good-faith determination that a borrower has the ability to repay the loan based on verified income, assets, employment, credit history, and monthly debt obligations.
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