Finance
A Utah lender offering a 'no-doc' or 'stated income' loan would be:
AComplying with modern lending standards
BPotentially violating the ability-to-repay rules under the Dodd-Frank Act✓ Correct
COffering a standard FHA product
DRequired to report the loan to the Division of Real Estate
Explanation
Dodd-Frank's ability-to-repay rules require lenders to verify a borrower's income, assets, and ability to repay before originating a mortgage. No-doc and stated-income loans for owner-occupants violate these rules.
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