Finance
In New Mexico, the 'ability to repay' rule under the Dodd-Frank Act requires lenders to:
AApprove all loan applications from creditworthy borrowers
BMake a good-faith determination that the borrower can reasonably repay the loan✓ Correct
CLimit all mortgages to 30-year fixed rates
DProvide loans at below-market rates to low-income borrowers
Explanation
The Ability to Repay (ATR) rule requires lenders to verify and document the borrower's income, assets, and debt obligations to ensure the borrower has a reasonable ability to repay the mortgage loan.
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