Reg Z ATR –Ability to Repay and Verification of Income or Assets

Compliance > Regulation Z - TILA > Ability to Repay / Qualified Mortgages
Q:  Under the standard ATR rules, what are some examples of records a creditor may use to verify the consumer’s income or assets?
A:  A creditor may verify a consumer’s income or assets by using a variety of records, including:
  • A tax return transcript issued by the IRS;
  • Copies of tax returns the consumer filed with the IRS or a state taxing authority;
  • IRS Form W-2s or similar IRS forms used for reporting wages or tax withholding;
  • Payroll statements, including military leave and earnings statements;
  • Financial institution records;
  • Records from the consumer’s employer or a third party that obtained information from the employer;
  • Records from a federal, state or local government agency stating the consumer’s income from benefits or entitlements;
  • Receipts from the consumer’s use of check cashing services; and
  • Receipts from the consumer’s use of a funds transfer service.

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