The Mortgage Reform and Anti-Predatory Lending Act of 2010 sets minimum underwriting standards for mortgages and prohibits mandatory arbitration clauses and prepayment penalties for ARMs.

Question

Quizplus · Accepted Answer

The Mortgage Reform and Anti-Predatory Lending Act, part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, indeed sets minimum underwriting standards for mortgages and prohibits mandatory arbitration clauses and prepayment penalties for certain types of mortgages, including adjustable-rate mortgages (ARMs), to protect consumers from risky lending practices.

The Mortgage Reform and Anti-Predatory Lending Act of 2010 Sets