Finance
The qualified mortgage (QM) rule was established by the Consumer Financial Protection Bureau (CFPB) to:
ACap mortgage interest rates
BCreate a category of safer mortgage loans meeting ability-to-repay standards, providing lenders legal protection✓ Correct
CEliminate all adjustable-rate mortgages
DRequire 20% down payments on all home loans
Explanation
The CFPB's Qualified Mortgage (QM) rule defines loans meeting specific ability-to-repay standards (maximum DTI, no excessive fees, no risky features). Lenders making QM loans receive a presumption of compliance with ATR requirements.
Related Arkansas Finance Questions
- A VA loan guarantee benefits the veteran borrower primarily by:
- The Ability-to-Repay (ATR) rule requires lenders to:
- The loan-to-value (LTV) ratio is calculated by:
- Under RESPA (Real Estate Settlement Procedures Act), which of the following is prohibited?
- The process of gradually reducing a loan balance through regular principal and interest payments is called:
- A borrower's monthly payment includes PITI. What does the 'I' for insurance refer to?
- Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) reflects:
- Private mortgage insurance (PMI) is typically required when the buyer's down payment is:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →