A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
Correct Answer
B) A rebuttable presumption that the ATR rule was satisfied
Under 12 CFR 1026.43(e)(1), QM loans receive a rebuttable presumption of compliance with the ATR rule. This means the lender is presumed to have met ATR requirements, but the presumption can be overcome with evidence to the contrary.
Why This Is the Correct Answer
Under 12 CFR 1026.43(e)(1), QM loans receive a rebuttable presumption of compliance with the ATR rule. This means the lender is presumed to have met ATR requirements, but the presumption can be overcome with evidence to the contrary.
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A mortgage company's billboard displays 'Refinance and save! Payments starting at $999 per month on loans up to $200,000.' What makes this advertisement non-compliant with TILA?
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A borrower's homeowners insurance premium increases by $300 annually after the Closing Disclosure was issued, discovered during the final insurance verification. This change affects the monthly payment by $25. What action is required?