Finance
Under the Dodd-Frank Act, a Qualified Mortgage (QM) generally prohibits:
AFixed interest rates
BNegative amortization, interest-only payments, and balloon payments✓ Correct
CDown payments below 20%
DAdjustable rate features
Explanation
A Qualified Mortgage cannot have negative amortization, interest-only periods, balloon payments (for most loans), or exceed the 43% DTI threshold. These rules protect borrowers from risky loan features.
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