Finance
A Nebraska lender who makes a 'stated income' loan (accepting income without documentation verification) is taking on:
ALess risk than conventional documented loans
BGreater default risk; stated income loans were heavily restricted after the 2008 financial crisis✓ Correct
CThe same risk as conventional loans
DNo risk because the property serves as collateral
Explanation
Stated income loans were largely banned after the 2008 financial crisis. The Ability to Repay (ATR) rule now requires lenders to verify income before extending credit — protecting both borrowers and the financial system.
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