Do ATR/QM rules apply?

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!

If you deem this loan consumer purpose and it is secured by their principal dwelling - yes.

Thanks, I appreciate the confirmation.

Just to take it a bit further, even if it's secured by any dwelling, it will be subject to ATR/QM.

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.