Finance
A Washington lender who makes a qualifying mortgage (QM) under the Ability to Repay rule is presumed to have:
AGuaranteed the borrower will not default
BMade a reasonable determination that the borrower can repay the loan✓ Correct
CObtained DOL approval for the loan terms
DSet the interest rate below the market average
Explanation
The Ability to Repay rule (12 CFR 1026.43) requires lenders to make a reasonable good-faith determination that the borrower can repay. Qualified Mortgages (QMs) receive a legal presumption of compliance with this requirement.
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