What minimum standard for mortgages was established by the Dodd-Frank Act?

The Dodd-Frank Act implemented significant reforms in the financial industry, particularly in response to the mortgage crisis that contributed to the 2008 financial collapse. One of the key components of the Dodd-Frank Act is the establishment of standards for evaluating borrowers' repayment ability. This requirement is aimed at ensuring that lenders assess a borrower's capacity to repay a loan by considering various financial factors, which helps to prevent risky lending practices and protect consumers from taking on unaffordable debt.

The focus on evaluating repayment ability includes the requirement for lenders to verify borrowers' income, credit history, and overall financial health, thus promoting responsible lending and increased stability in the mortgage market. This standard is essential in creating more sustainable loan products and reducing the chances of default, contributing to a more robust and reliable financial system.

The other options presented, while potentially relevant to discussions around mortgage lending, do not accurately represent the Dodd-Frank Act's core standards and objectives concerning borrower evaluation and lending practices.