Mortgage loan originator dave knows that his customer is losing his job at the end of the month because the plant where he works is closing, but in his eagerness to close the deal, he decided to ignore that fact. which rule is dave violating?

The answer is the ability-to-repay rule.

Explanation:

The rule refers to the awareness of mortgage originators about the customer's present and future ability to pay the loan. This way, the leader must previously investigate about the borrower's income, credit history and job reliability.

If the originator knows the customer won't be able to pay in the future, and still proceeds, he will be breaking the ability-to-repay rule.

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