Under the TILA,a qualified mortgage (QM)
A)limits upfront points and fees to 5 percent.
B)limits all of a borrower's debt to 43 percent of his or her income.
C)allows balloon payments only if the borrower agrees up front.
D)must allow for negative amortization.

Question

Quizplus · Accepted Answer

Under the Truth in Lending Act (TILA), a qualified mortgage (QM) is designed to ensure borrowers are able to repay their loans. One of the criteria for a QM is that it limits all of a borrower's debt to 43 percent of his or her income, ensuring that borrowers are not over-leveraged.

Under the TILA,a Qualified Mortgage (QM)