The Dodd-Frank Act ushered in a new standard for home mortgage underwriting. Which of the following standards is now required of any lender when underwriting a home loan?

Question

Quizplus · Accepted Answer

The Dodd-Frank Act established the ability-to-repay standard, which requires lenders to determine a borrower's ability to repay a mortgage loan. This includes considering factors such as income, assets, and debts, and verifying the information provided by the borrower. The ability-to-repay standard is intended to reduce the risk of default and ensure that borrowers are not given loans that they cannot afford to pay back.

The Dodd-Frank Act Ushered in a New Standard for Home