Finance
The 'Dodd-Frank Act' introduced the concept of a 'Qualified Mortgage' (QM). A key feature of a QM loan is:
ANo income verification required
BA limit on points/fees and a requirement that the lender verify the borrower's ability to repay✓ Correct
CMandatory 20% down payment
DFixed interest rates only
Explanation
A Qualified Mortgage (QM) meets specific standards including limits on fees, no negative amortization, and a requirement that lenders verify and document the borrower's ability to repay the loan.
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