The Ability to Repay (ATR) Rule, established under Regulation Z, requires lenders to make a reasonable, good-faith determination that a borrower can repay a mortgage loan before it is made. This rule is foundational to responsible lending and protects both borrowers and financial institutions from the risks associated with unaffordable loans.
In this course, participants will learn what the ATR Rule requires, which loans are covered, the eight underwriting factors that must be considered and verified, documentation expectations, and how Qualified Mortgages (QM) relate to ATR compliance. Through real-world scenarios and common compliance pitfalls, learners will gain practical insight into applying ATR standards consistently and defensibly.
By the end of the course, participants will understand not only what the rule requires — but how to implement it effectively in day-to-day mortgage lending decisions.

Learning Objectives

By the end of this course, learners will be able to:
•    Define the Ability to Repay Rule under Regulation Z.
•    Identify which mortgage loans are subject to ATR requirements.
•    List and explain the eight ATR underwriting factors.
•    Describe documentation and verification requirements for compliance.
•    Explain the difference between ATR and Qualified Mortgage (QM) protections.
•    Recognize common ATR compliance risks and underwriting pitfalls.
•    Apply ATR principles to real-world mortgage scenarios.