A lender can make a higher-priced mortgage loan based on the value of the consumer's home without verifying the consumer's other credit obligations.

Question

Quizplus · Accepted Answer

Lenders are required to verify a consumer's ability to repay a mortgage loan, which includes assessing the consumer's credit obligations, income, and other financial factors, not just the value of the home.

A Lender Can Make a Higher-Priced Mortgage Loan Based on the Value