Management is looking at a new product. They are looking at doing 2 year variable rate consumer construction loans. With a 2 year maturity, ATR would no longer be exempt, and would apply, am I correct about that?

Also, since the loan term is longer than 1 year, if the home is the primary dwelling, would the Early ARM disclosure at application apply?

I looked to see if anything in the dwelling definition cancels these two requirements out, since it is a construction loan, not an existing home, but did not specifically see anything I thought would change this, but wanted to confirm.

Correct on both accounts - so on the ATR side, you need to prove that they can pay the balloon payment without consideration of later refinancing.