1. Ability to Repay/Qualified Mortgage Rule
Module 1
Ability to Repay/Qualified Mortgage Rule

2. Module 1 Ability to Repay/Qualified Mortgage Rule
1.1 Overview of the Ability to Repay Rule
1.2 Overview of Qualified Mortgages

3. Module 1 Ability to Repay/Qualified Mortgage Rule
1.1 Overview of the Ability to Repay Rule
Covered and Exempt Transactions, Loan Programs, and Creditors
Repayment Ability
Reasonable, Good-Faith Determination
Verification using Third-party Records
DTI Threshold for Loans Originated According to the ATR/QM Rule
Recordkeeping Requirement to Comply with the ATR/QM Rule

4. Module 1 Ability to Repay/Qualified Mortgage Rule
1.1 Overview of the Ability to Repay Rule
Considering, Calculating, and Confirming Income and Debt Information
Income, Assets, Employment and Credit History
What Debt is Included when Determining ATR?
Payment Calculations
Borrower Cannot Repay Loan Originate Under the General ATR/QM Rule
Refinancing from Nonstandard to Standard Loans
Payment Calculations for Refinancing

5. Module 1 Ability to Repay/Qualified Mortgage Rule
1.2 Overview of Qualified Mortgages
General Requirements of QM Loans
Calculating Points and Fees
Determining the DTI Ratios on QM Loans
Types of Qualified Mortgages
Type 1: General QM definition
Type 2: GSE-eligible (Temporary) QM definition
Type 3: Small Creditor QM definition

6. Module 1 Ability to Repay/Qualified Mortgage Rule
1.2 Overview of Qualified Mortgages
Creditor Liability Protection
Safe Harbor
Rebuttable Presumption
Prepayment Penalties and QMs
Limits on Prepayment Penalties
Alternative Loan
Record Retention