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

question 6

Multiple Choice

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?

• A) Ability-to-repay standard
• B) Ability-to-prepay standard
• C) Ability-to-securitize standard
• D) Ability-to-lend standard

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Definitions:

Bad Job

Employment that is considered unsatisfactory due to factors like poor pay, working conditions, or lack of benefits.

Economy

The system of production, distribution, and consumption of goods and services within a society, influencing its wealth and living standards.

Low Skill Level

Referring to jobs or tasks that require a minimal amount of training or education to perform.

Little Autonomy

A situation where there is scant or limited independence or self-governance within a subsystem or entity.