Property Financial Corporation makes loans that qualify,under a Federal Reserve Board amendment to Regulation Z,as Higher-Priced Mortgage Loans (HPMLs).Quinn applies to Property Financial for an HPML.To make the loan,the lender must

Question

Quizplus · Accepted Answer

As an HPML lender, Property Financial Corporation must verify the borrower's ability to repay the loan, as required under the Dodd-Frank Wall Street Reform and Consumer Protection Act. This ensures that the borrower is not put at risk of defaulting on the loan, which would not only hurt the borrower but also the lender and the overall economy. The other three choices do not align with responsible lending practices and are not required or allowed under HPML protections.

Property Financial Corporation Makes Loans That Qualify,under a Federal Reserve