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.

Question

Quizplus · Accepted Answer

The new consumer protection legislation requires lenders to verify the income, job status, and credit history of the borrower to ensure their ability to repay the residential mortgage. However, there is no requirement to verify that the borrower can read and understand a loan contract.

In Order to Ensure That Borrowers Have an Ability to Repay