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The ATR rule, established under TILA and enforced by CFPB, requires lenders to make a reasonable determination that the borrower can repay the loan. Verification must include income, assets, employment status, credit history, debt obligations, and housing expenses. Credit card rewards (A) and marital status (D) are irrelevant, while employment tenure (C) is not specifically required unless it impacts income stability. Therefore, Answer B is correct.

The Real Estate Settlement Procedures Act (RESPA), under Regulation X, requires lenders to provide the “Your Home Loan Toolkit” booklet to applicants for purchase-money mortgage loans within three business days of application. This booklet educates borrowers about loan terms, closing costs, and settlement processes. TILA governs credit disclosures, ECOA addresses credit discrimination, and HMDA governs data collection and reporting. Only RESPA mandates this booklet. Therefore, Answer A is correct.

A reverse mortgage, most commonly the FHA-insured Home Equity Conversion Mortgage (HECM), allows homeowners aged 62 or older to access home equity through lump sums, monthly payments, or lines of credit without making monthly mortgage payments. Repayment occurs when the borrower sells, moves permanently, or passes away. Bridge loans (A) are temporary, balloon mortgages (C) involve lump-sum payments, and ARMs (D) are traditional forward mortgages with interest-rate adjustments. Reverse mortgages uniquely provide cash flow for seniors. Therefore, Answer B is correct.

The primary mortgage market consists of lenders who work directly with borrowers to originate residential mortgage loans. Banks, credit unions, mortgage bankers, and brokers operate in this space, offering products, collecting applications, underwriting, and funding loans. After origination, loans may be retained in portfolio or sold into the secondary market, where securitization occurs. Regulation of lenders is the responsibility of federal and state agencies, not the primary market itself. Indexes are developed by independent financial institutions and markets, not primary lenders. Thus, the essential role of the primary market is origination, making Answer B correct.

The U.S. Department of Veterans Affairs guarantees VA loans, which provide eligible veterans and service members the ability to finance a home with no down payment and no ongoing mortgage insurance. Instead, a one-time funding fee may apply, which can be financed. FHA loans require both upfront and annual mortgage insurance, USDA loans are restricted to rural areas and require a guarantee fee, and conventional loans generally require private mortgage insurance (PMI) unless the borrower makes a 20% down payment. The VA program is uniquely designed to support veterans’ access to housing. Therefore, Answer B is correct.