What does ATR stand for in mortgage lending?

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Multiple Choice

What does ATR stand for in mortgage lending?

Ability to Repay. In mortgage lending, ATR means the lender must make a reasonable determination that the borrower has the ability to repay the loan according to its terms. This requirement comes from the Truth in Lending Act as amended by the Dodd-Frank Act. Lenders assess factors such as income and assets, employment status, monthly housing payments and other debts, current debt-to-income ratio, credit history, and the loan’s terms and features, and they document this assessment at or before closing. If the loan meets certain criteria, it may be a Qualified Mortgage with a safe harbor from certain liabilities. The other options aren’t related to mortgage lending ATR.

Ability to Repay. In mortgage lending, ATR means the lender must make a reasonable determination that the borrower has the ability to repay the loan according to its terms. This requirement comes from the Truth in Lending Act as amended by the Dodd-Frank Act. Lenders assess factors such as income and assets, employment status, monthly housing payments and other debts, current debt-to-income ratio, credit history, and the loan’s terms and features, and they document this assessment at or before closing. If the loan meets certain criteria, it may be a Qualified Mortgage with a safe harbor from certain liabilities. The other options aren’t related to mortgage lending ATR.

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