Federal Mortgage LawsQuestion 61 of 400
The Ability-to-Repay rule requires a creditor to make a reasonable, good-faith determination of the consumer's ability to repay. Which of the following is NOT one of the underwriting factors the rule requires the creditor to consider and verify?
a.Current or reasonably expected income or assets
b.Current debt obligations, alimony, and child support
c.Employment status
d.The consumer's race or national origin
Explanation
Reg Z 1026.43 lists eight underwriting factors, including income/assets, employment status, monthly mortgage payment, other debts, current obligations such as alimony/child support, monthly debt-to-income ratio or residual income, and credit history. A consumer's race or national origin is never a permissible underwriting factor and considering it would violate fair lending laws.
Law Reference: Ability-to-Repay/Qualified Mortgage Rule (Reg Z 1026.43)Practice all 400 questions free — no signup required.
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