In Order to Ensure That Borrowers Have an Ability to Repay

question 4

Multiple Choice

In order to ensure that borrowers have an ability to repay residential mortgages,the new consumer protection legislation requires lenders to do all of the following EXCEPT

• A)verify the income of the borrower.
• B)verify the borrower's job status.
• C)check the credit history of the borrower.
• D)verify that the borrower can read and understand a loan contract.

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Definitions:

Share

An individual portion of a company's capital, represented by a stock, that entitles its holder to a proportion of the corporation's earnings and assets.

Family and Medical Leave Act

A U.S. law that provides eligible employees with unpaid, job-protected leave for certain family and medical reasons.

Companies

Legally recognized organizations designed to provide goods or services to consumers for profit.

Multi-National Companies

Businesses that operate in multiple countries around the world, beyond their home country.