Finance
The Dodd-Frank Act's 'Ability to Repay' rule requires Massachusetts mortgage lenders to:
AApprove all mortgage applications regardless of income
BMake a reasonable, good-faith determination that borrowers have the ability to repay the loan✓ Correct
COffer only fixed-rate mortgages
DApprove loans only for owner-occupied properties
Explanation
The Ability to Repay rule (Regulation Z) requires lenders to make a reasonable, good-faith determination that borrowers have the financial ability to repay the mortgage before originating the loan.
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