Finance
Under the Dodd-Frank Act, an Ohio lender making a 'qualified mortgage' (QM) must ensure the borrower has:
AA minimum down payment of 20%
BThe ability to repay the loan, based on verifiable income, assets, and debt✓ Correct
CA minimum credit score of 720
DNo other outstanding debts
Explanation
The Ability-to-Repay (ATR) rule under Dodd-Frank requires lenders to make a reasonable, good-faith determination that the borrower can repay the loan. Qualified Mortgages (QM) are presumed to comply with this requirement.
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