Reg Z ATR – General ATR and Income

Compliance > Regulation Z - TILA > Ability to Repay / Qualified Mortgages
Q:  What do I include on the income side of the debt-to-income ratio when determining ATR?
 
A:  You can include earned income (wages or salary); unearned income (interest and dividends); and other regular payments to the consumer such as alimony, child support, or government benefits. In all cases, the amounts you rely upon to determine ATR must be verified.
 
Once you have information about the consumers’ income, you will use it, along with the consumers’ debt information, to calculate the DTI ratio or residual income.
 
 
 
ADDITIONAL INFORMATION – CFPB ATR/QM Compliance Guide - http://files.consumerfinance.gov/f/201603_cfpb_atr-qm_small-entity-compliance-guide.pdf

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