Finance
Nebraska's 'ability to repay' (ATR) rule for residential mortgages requires lenders to:
AGuarantee the borrower can make all future payments
BMake a reasonable, good faith determination that the borrower has the financial ability to repay the loan✓ Correct
CDeny any loan with a DTI above 36%
DOnly approve loans with 20% or more down payment
Explanation
The ATR rule (under the Dodd-Frank Act, enforced by the CFPB) requires lenders to verify borrowers' income, assets, employment, debts, and credit history to make a reasonable determination that they can afford the loan payments.
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