Finance
In South Dakota, the 'Ability-to-Repay' (ATR) rule under Dodd-Frank requires lenders to:
AGive all applicants the ability to repay their loans through loan modifications
BMake a good faith assessment that the borrower can repay the loan before making it✓ Correct
CApprove all loans for first-time buyers
DLimit loan amounts to ensure borrowers can repay within 10 years
Explanation
The Ability-to-Repay rule requires lenders to make a reasonable, good faith determination that a borrower can repay a mortgage before originating it, considering income, assets, employment, and obligations.
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