My bank is a small creditor/small servicer so we have several options for QMs. I just want to clarify one thing. It is my understanding that you must comply with ATR rules on all mortgages. Is that correct? It’s going to be more difficult to prove ATR for self employed individuals, but we must still do that?
These minimum standard requirements for dwelling secured loans (that have been labeled ability-to-repay rules) apply to any consumer credit transaction secured by a dwelling with the exception of HELOCs, loans secured by time-shares; and reverse mortgages, temporary or bridge loans of 12 months or less, a construction phase 12 months or less of a construction-to-perm loan and a few other types of loans made under certain programs/guidelines are exempt from most of the requirements (with the exception of the rules pertaining to prepayment penalties and evasion). Take a look at 1026.43 to get a full list of what is covered/excluded from these requirements. Here’s a link to the regulation: https://www.ecfr.gov/cgi-bin/text-idx?SID=d8d364c1194eba14930c06affd001d5f&node=12:184.108.40.206.220.127.116.11&rgn=div8
For any covered loan you need to comply with the general ability-to-repay rule or one of the QM rules. You can choose which to comply with on a case by case basis.
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