Institutions that offer nontraditional mortgage products should make sure they comply with the following, as applicable, EXCEPT:

Answer(s): C

Underwriting standards in Subprime Mortgage Lending include:

The borrower's debt-to-income ratio should include the borrower's total yearly housing-related payments as a percentage of gross monthly income
Institutions should have a clear policy governing the use of risk-layering features, such as reduced documentation loans or simultaneous second lien mortgages
Stated income and reduced documentation loans to subprime borrowers should be made only if there are clear, documented mitigating factors
Mitigating factors should be present when risk layering features are combined in order to support the underwriting decision and the borrower's repayment capacity

Answer(s): A

Underwriting standards in Subprime Mortgage Lending include:

The borrower's debt-to-income ratio should include the borrower's total yearly housing-related payments as a percentage of gross monthly income
Institutions should have a clear policy governing the use of risk-layering features, such as reduced documentation loans or simultaneous second lien mortgages
Stated income and reduced documentation loans to subprime borrowers should be made only if there are clear, documented mitigating factors
Mitigating factors should be present when risk layering features are combined in order to support the underwriting decision and the borrower's repayment capacity

Answer(s): A

Underwriting standards in Subprime Mortgage Lending include:

The borrower's debt-to-income ratio should include the borrower's total yearly housing-related payments as a percentage of gross monthly income
Institutions should have a clear policy governing the use of risk-layering features, such as reduced documentation loans or simultaneous second lien mortgages
Stated income and reduced documentation loans to subprime borrowers should be made only if there are clear, documented mitigating factors
Mitigating factors should be present when risk layering features are combined in order to support the underwriting decision and the borrower's repayment capacity

Answer(s): A

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