Ability to Repay and Qualified Mortgage Policy
Updated 06/12/2026
This policy summarizes the requirements of the ATR/QM rules. Institutions are encouraged to review and modify as needed, based on their size, complexity, and scope.
Rule: 12 CFR Part 1026 – Truth in Lending (Regulation Z)
Keywords: Truth in Lending, Regulation Z, TILA, ATR, QM, Mortgage
5/6/2026 –
- Removed references to 43% DTI and Appendix Q.
- Revised QM section “Other Agencies” (1026.43(e)(4)) to reflect current regulation.
- Removed General QM Amendments Effective March 1, 2021, section due to no longer being valid.
- Removed QM Temporary Small Creditor Rule section due to no longer being valid.
6/12/2026 – Note: On May 19, 2026, President Trump issued Executive Order 14406, Restoring Integrity to America’s Financial System. Subsequently, FinCEN, jointly with the FDIC and OCC, issued Joint Advisory FIN-2026-A002 addressing BSA/AML risks associated with non-work-authorized populations, and the CFPB issued its Statement on Ability to Repay and Immigration Status regarding the consideration of immigration status and repayment risk in underwriting decisions. As of this writing, additional guidance regarding related credit-risk management expectations remains pending.
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