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#2227187 - 12/11/19 04:53 PM Do ATR/QM rules apply?
nu2regs Offline
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Joined: Mar 2013
Posts: 75
The bank had a commercial loan made to an individual that was secured by commercial building. The loan was charged off however the bank wants to recoup taxes ($200,000) that were paid. The loan will be in the name of the individual however it will be secured by their primary residence. Looking at the Reg Z's exemptions, it doesn't appear based on the facts that were provided the individual would be exempted from Reg. Z.

Would this loan still need to be written under ATR rules and required TRID disclosures?

Any assistance would be helpful... Thanks!

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Ability to Repay/Qualified Mortgage Rule
#2227191 - 12/11/19 05:55 PM Re: Do ATR/QM rules apply? nu2regs
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,234
Galveston, TX
If you deem this loan consumer purpose and it is secured by their principal dwelling - yes.
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#2227198 - 12/11/19 07:03 PM Re: Do ATR/QM rules apply? rlcarey
nu2regs Offline
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Joined: Mar 2013
Posts: 75
Thanks, I appreciate the confirmation.

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#2227387 - 12/13/19 08:36 PM Re: Do ATR/QM rules apply? nu2regs
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
Just to take it a bit further, even if it's secured by any dwelling, it will be subject to ATR/QM.
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#2227477 - 12/16/19 06:56 PM Re: Do ATR/QM rules apply? nu2regs
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
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On the Net
If this loan is not an extension of a commercial loan, and even though the bank may see it as that, it would appear this is personal liability/loan and the Reg Z consumer protections all kick in.
Last edited by Andy_Z; 12/16/19 07:00 PM.
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