Finance
The 'Qualified Mortgage' (QM) rule under Dodd-Frank requires lenders to verify a borrower's:
AA. Credit score only
BB. Ability to repay the loan through documented income, assets, and debt verification✓ Correct
CC. Employment history for the past 10 years
DD. Physical health and life expectancy
Explanation
The QM/Ability-to-Repay rule requires lenders to make a reasonable, good-faith determination of the borrower's ability to repay the loan. Lenders must verify income, assets, employment, credit history, and monthly debt obligations.
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