Under Title 46, who is restricted from lending?

• A. Any borrower without a credit history
• B. Borrowers who finance points and fees without counseling certification
• C. Borrowers with low credit scores
• D. Borrowers with high income

Answer: (B)

The assertion that borrowers who finance points and fees without counseling certification are restricted from lending aligns with regulatory requirements designed to protect consumers. Under Title 46, these regulations ensure that borrowers are informed about the costs associated with their loans, particularly when financing fees and points that can significantly impact the overall cost of credit.

Counseling certification is aimed at ensuring that borrowers understand the implications of their financial decisions, especially when they may be taking on additional debt. Failing to provide this certification means that the lender cannot proceed, as it places the borrower at risk of incurring unaffordable loan costs without proper guidance.

The other choices, while related to creditworthiness and financial scenarios, do not typically invoke explicit restrictions under Title 46. For instance, not having a credit history can be a challenge, but it does not necessarily mean the borrower is prohibited from lending; lenders may have alternative assessments. Similarly, having a low credit score may make it challenging to secure favorable loan terms, but it does not create a blanket restriction. Lastly, high-income borrowers are generally seen as less risky, and there are no specific restrictions against them under such regulations. Instead, the focus is on ensuring that borrowers have the required information and understanding before committing to financial obligations.