In the conclusive presumption framework, what type of loans are covered by this qualification?

• A. Prime loans that meet QM standards
• B. All loans
• C. Private loans
• D. Non-prime loans only

Answer: (A)

In the conclusive presumption framework, the protection applies only to a subset of loans that are prime and meet the Qualified Mortgage standards. This means the loan is considered to comply with the ability-to-repay rule without further evidence, as long as it fits both being prime and meeting the QM criteria (such as the price-fee caps and other underwriting requirements). If a loan isn’t prime or doesn’t meet QM standards, it doesn’t receive this conclusive safe harbor and ATR must be evaluated by other rules. That’s why the best answer is prime loans that meet QM standards.