Finance
A Missouri lender who issues a 'non-QM' (non-qualified mortgage) loan accepts:
ANo risk since the government guarantees it
BIncreased liability risk and cannot benefit from certain legal protections available to QM lenders✓ Correct
COnly cash buyers
DOnly investment property loans
Explanation
Non-QM loans don't meet Dodd-Frank's Qualified Mortgage criteria. While legal, lenders who make non-QM loans have increased legal liability (no QM safe harbor) and may not be able to sell them to Fannie/Freddie.
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