(1) Safe harbor and presumption of compliance. (i) Safe harbor for transactions that are not higher-priced covered transactions. A creditor or assignee of a qualified mortgage, as defined in paragraphs (e)(2), (e)(4), (e)(5), (e)(6), or (f) of this section, that is not a higher-priced covered transaction, as defined in paragraph (b)(4) of this section, complies with the repayment ability requirements of paragraph (c) of this section.
(ii) Presumption of compliance for higher-priced covered transactions. (A) A creditor or assignee of a qualified mortgage, as defined in paragraphs (e)(2), (e)(4), (e)(5), (e)(6), or (f) of this section, that is a higher-priced covered transaction, as defined in paragraph (b)(4) of this section, is presumed to comply with the repayment ability requirements of paragraph (c) of this section.
Paragraph (e)(6) is the small creditor temporary balloon. If your bank qualifies for the small creditor QM and originates balloon loans in accordance with 1026.43(e)(6), you will have safe harbor for non-higher-priced covered transactions. For higher-priced covered transactions originated under (e)(6), you have a rebuttable presumption of compliance
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I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.