Finance
A Texas 'stated income' or 'no-income verification' mortgage loan is generally:
ACommon and widely available for any borrower
BHighly restricted under Dodd-Frank's ability-to-repay rules; essentially prohibited for most residential mortgages✓ Correct
CAvailable for all FHA loans
DRequired for self-employed borrowers
Explanation
Under Dodd-Frank's ability-to-repay rule, lenders must verify a borrower's income and ability to repay for most residential mortgages. 'Stated income' loans (no income verification) are prohibited for most consumer mortgages after the 2008 financial crisis reforms.
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