Description
Regulation Z (Reg Z), which implements the federal Truth in Lending Act (TILA), requires creditors to conduct an Ability to Repay (ATR) analysis for certain types of closed-end mortgage loans. Evaluating a consumer’s ATR is complicated and can result in significant liability to the creditor if performed incorrectly. Therefore, Reg Z also gives lenders certain protections from such liability when making any one of several categories of Qualified Mortgages (QMs).
