Finance
The 'ability to repay' rule under Dodd-Frank and federal Regulation Z requires Pennsylvania lenders to:
AGuarantee all borrowers will successfully repay their loans
BMake a good-faith determination that the borrower has the ability to repay the mortgage based on verified income and assets✓ Correct
CApprove all qualified borrowers regardless of debt levels
DProvide a minimum loan amount to qualifying borrowers
Explanation
The Ability-to-Repay (ATR) rule requires lenders to make a reasonable, good-faith determination of a borrower's ability to repay the loan before originating a mortgage. Lenders must consider income, employment, assets, debts, and credit history.
Related Pennsylvania Finance Questions
- Fannie Mae and Freddie Mac are known as:
- A 'bridge loan' in Pennsylvania real estate is used by buyers who need to:
- An FHA loan insured through HUD requires the borrower to pay:
- What is an 'assumable mortgage' and are Pennsylvania mortgages typically assumable?
- Pennsylvania's transfer tax on real estate is:
- In Pennsylvania, a mortgage lien is typically recorded to establish its priority. Priority among mortgage liens is generally determined by:
- In Pennsylvania, USDA Rural Development loans are available for properties:
- A Pennsylvania homebuyer with a DTI of 28% front-end (housing) and 38% back-end (total) would most likely:
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →