Finance
The Ability to Repay (ATR) rule under Dodd-Frank requires lenders to:
AApprove all loan applications
BMake a good faith, reasonable determination that the borrower can repay the loan✓ Correct
COnly offer 30-year fixed mortgages
DReport all loans to CFPB
Explanation
The ATR rule requires lenders to make a reasonable, good faith determination that borrowers have the ability to repay the loan, protecting against the 'no-doc' and no-qualification loans that contributed to the 2008 crisis.
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