Finance
A Kentucky 'stated income' loan, where the lender does not verify income documentation, is now largely:
AThe most common mortgage type
BProhibited for most residential mortgages under Dodd-Frank's ability-to-repay rules✓ Correct
CEncouraged by HUD for self-employed borrowers
DOnly available through KREC-licensed lenders
Explanation
Dodd-Frank's ability-to-repay (ATR) rule requires lenders to verify a borrower's ability to repay before making a mortgage. 'Stated income' loans that skip income verification are largely prohibited for covered loans.
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