Finance
The Dodd-Frank Act's 'Qualified Mortgage' (QM) standards require lenders to:
AOnly make loans with government guarantees
BVerify the borrower's ability to repay based on income, assets, and debts✓ Correct
CLimit all loans to 15-year terms
DRequire 20% down payments on all QMs
Explanation
Under Dodd-Frank's Ability-to-Repay rule, lenders must verify borrower income, assets, employment, and debts before originating a mortgage. QMs that comply with these standards receive legal protections. This rule was designed to prevent the reckless lending of the pre-2008 era.
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