source:
  type: regulation
  id: reg-z-1026.43
  authority: 12 CFR §1026.43 — Minimum standards for transactions secured by a dwelling (ATR/QM)
  description: 'Regulation Z §1026.43 implements the Ability-to-Repay/Qualified Mortgage rule: scope,
    general ATR rule, eight ATR factors, third-party verification of income and assets, refinancing of
    non-standard mortgages, the QM categories (general, agency, small-creditor portfolio, balloon-payment,
    seasoned), and the QM points-and-fees cap.'
obligations:
- id: reg-z-1026.43-full
  canonical_id: reg-z-1026.43-full
  section: 12 CFR §1026.43
  description: Link to an amendment published at 90 FR 2503 , Jan. 10, 2025.
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: Link to an amendment published at 90 FR 2503 , Jan. 10, 2025.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-a
  canonical_id: reg-z-1026.43-a
  section: 12 CFR §1026.43(a)
  description: '(a): (a) Scope. This section applies to any consumer credit transaction that is secured
    by a dwelling , as defined in § 1026.2(a)(19) , including any real property attached to a dwelling
    , other than: (1) A home equity line of credit subject to § 1026.40 ; (2) A mortgage transaction secured
    by a consumer…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(a) Scope. This section applies to any consumer credit transaction that is secured
      by a dwelling , as defined in § 1026.2(a)(19) , including any real property attached to a dwelling
      , other than: (1) A home equity line of credit subject to § 1026.40 ; (2) A mortgage transaction
      secured by a consumer ''s interest in a timeshare plan, as defined in 11 U.S.C. 101 (53(D)); or
      (3) For purposes of paragraphs (c) through (f) of this section:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) A reverse mortgage subject to § 1026.33 ; (ii) A temporary or “bridge” loan with
    a term of 12 months or less, such as a loan to finance the purchase of a new dwelling where the consumer
    plans to sell a current dwelling within 12 months or a loan to finance the initial construction of
    a dwelling …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: (i) A reverse mortgage subject to § 1026.33 ; (ii) A temporary or “bridge” loan with
      a term of 12 months or less, such as a loan to finance the purchase of a new dwelling where the
      consumer plans to sell a current dwelling within 12 months or a loan to finance the initial construction
      of a dwelling ; (iii) A construction phase of 12 months or less of a construction-to-permanent loan;
      (iv) An extension of credit made pursuant to a program administered by a Housing Finance Agency,
      as defined under 24 CFR 266.5 ;
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-v
  canonical_id: reg-z-1026.43-v
  section: 12 CFR §1026.43(v)
  description: '(v): (v) An extension of credit made by: (A) A creditor designated as a Community Development
    Financial Institution, as defined under 12 CFR 1805.104 (h); (B) A creditor designated as a Downpayment
    Assistance through Secondary Financing Provider, pursuant to 24 CFR 200.194 (a), operating in accordance
    wi…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(v) An extension of credit made by: (A) A creditor designated as a Community Development
      Financial Institution, as defined under 12 CFR 1805.104 (h); (B) A creditor designated as a Downpayment
      Assistance through Secondary Financing Provider, pursuant to 24 CFR 200.194 (a), operating in accordance
      with regulations prescribed by the U.S. Department of Housing and Urban Development applicable to
      such persons; (C) A creditor designated as a Community Housing Development Organization provided
      that the creditor has entered into a commitment with a participating jurisdiction and is undertaking
      a project under the HOME program, pursuant to the provisions of 24 CFR 92.300 (a), and as the terms
      community housing development organization, commitment, participating jurisdiction, and project
      are defined under 24 CFR 92.2 ; or (D) A creditor with a tax exemption ruling or determination letter
      from the Internal Revenue Service under section 501(c)(3) of the Internal Revenue Code of 1986 (
      26 U.S.C. 501(c)(3) ; 26 CFR 1.501 (c)(3)-1), provided that: (1) During the calendar year preceding
      receipt of the consumer ''s application, the creditor extended credit secured by a dwelling no more
      than 200 times, except as provided in paragraph (a)(3)(vii) of this section; (2) During the calendar
      year preceding receipt of the consumer ''s application, the creditor extended credit secured by
      a dwelling only to consumers with income that did not exceed the low- and moderate-income household
      limit as established pursuant to section 102 of the Housing and Community Development Act of 1974
      ( 42 U.S.C. 5302(a)(20) ) and amended from time to time by the U.S. Department of Housing and Urban
      Development , pursuant to 24 CFR 570.3 ; (3) The extension of credit is to a consumer with income
      that does not exceed the household limit specified in paragraph (a)(3)(v)(D)( 2 ) of this section;
      and (4) The creditor determines, in accordance with written procedures, that the consumer has a
      reasonable ability to repay the extension of credit. (vi) An extension of credit made pursuant to
      a program authorized by sections 101 and 109 of the Emergency Economic Stabilization Act of 2008
      ( 12 U.S.C. 5211 ; 5219); (vii) Consumer credit transactions that meet the following criteria are
      not considered in determining whether a creditor exceeds the credit extension limitation in paragraph
      (a)(3)(v)(D)( 1 ) of this section: (A) The transaction is secured by a subordinate lien; (B) The
      transaction is for the purpose of: (1) Downpayment , closing costs, or other similar home buyer
      assistance, such as principal or interest subsidies; (2) Property rehabilitation assistance; (3)
      Energy efficiency assistance; or (4) Foreclosure avoidance or prevention; (C) The credit contract
      does not require payment of interest; (D) The credit contract provides that repayment of the amount
      of the credit extended is: (1) Forgiven either incrementally or in whole, at a date certain, and
      subject only to specified ownership and occupancy conditions, such as a requirement that the consumer
      maintain the property as the consumer ''s principal dwelling for five years; (2) Deferred for a
      minimum of 20 years after consummation of the transaction; (3) Deferred until sale of the property
      securing the transaction; or (4) Deferred until the property securing the transaction is no longer
      the principal dwelling of the consumer ; (E) The total of costs payable by the consumer in connection
      with the transaction at consummation is less than 1 percent of the amount of credit extended and
      includes no charges other than: (1) Fees for recordation of security instruments, deeds, and similar
      documents; (2) A bona fide and reasonable application fee; and (3) A bona fide and reasonable fee
      for housing counseling services; and (F) The creditor complies with all other applicable requirements
      of this part in connection with the transaction.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-b
  canonical_id: reg-z-1026.43-b
  section: 12 CFR §1026.43(b)
  description: '(b): (b) Definitions. For purposes of this section: (1) Covered transaction means a consumer
    credit transaction that is secured by a dwelling , as defined in § 1026.2(a)(19) , including any real
    property attached to a dwelling , other than a transaction exempt from coverage under paragraph (a)
    of this se…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(b) Definitions. For purposes of this section: (1) Covered transaction means a consumer
      credit transaction that is secured by a dwelling , as defined in § 1026.2(a)(19) , including any
      real property attached to a dwelling , other than a transaction exempt from coverage under paragraph
      (a) of this section. (2) Fully amortizing payment means a periodic payment of principal and interest
      that will fully repay the loan amount over the loan term. (3) Fully indexed rate means the interest
      rate calculated using the index or formula that will apply after recast, as determined at the time
      of consummation, and the maximum margin that can apply at any time during the loan term. (4) Higher-priced
      covered transaction means a covered transaction with an annual percentage rate that exceeds the
      average prime offer rate for a comparable transaction as of the date the interest rate is set by
      1.5 or more percentage points for a first-lien covered transaction, other than a qualified mortgage
      under paragraph (e)(5), (e)(6), or (f) of this section; by 3.5 or more percentage points for a first-lien
      covered transaction that is a qualified mortgage under paragraph (e)(5), (e)(6), or (f) of this
      section; or by 3.5 or more percentage points for a subordinate-lien covered transaction. For purposes
      of a qualified mortgage under paragraph (e)(2) of this section, for a loan for which the interest
      rate may or will change within the first five years after the date on which the first regular periodic
      payment will be due, the creditor must determine the annual percentage rate for purposes of this
      paragraph (b)(4) by treating the maximum interest rate that may apply during that five-year period
      as the interest rate for the full term of the loan. (5) Loan amount means the principal amount the
      consumer will borrow as reflected in the promissory note or loan contract. (6) Loan term means the
      period of time to repay the obligation in full. (7) Maximum loan amount means the loan amount plus
      any increase in principal balance that results from negative amortization, as defined in § 1026.18(s)(7)(v)
      , based on the terms of the legal obligation assuming:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) The consumer makes only the minimum periodic payments for the maximum possible
    time, until the consumer must begin making fully amortizing payments; and (ii) The maximum interest
    rate is reached at the earliest possible time. (8) Mortgage-related obligations mean property taxes;
    premiums and sim…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) The consumer makes only the minimum periodic payments for the maximum possible
      time, until the consumer must begin making fully amortizing payments; and (ii) The maximum interest
      rate is reached at the earliest possible time. (8) Mortgage-related obligations mean property taxes;
      premiums and similar charges identified in § 1026.4(b)(5) , (7), (8), and (10) that are required
      by the creditor; fees and special assessments imposed by a condominium, cooperative, or homeowners
      association; ground rent; and leasehold payments. (9) Points and fees has the same meaning as in
      § 1026.32(b)(1) . (10) Prepayment penalty has the same meaning as in § 1026.32(b)(6) . (11) Recast
      means:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) For an adjustable-rate mortgage, as defined in § 1026.18(s)(7)(i) , the expiration
    of the period during which payments based on the introductory fixed interest rate are permitted under
    the terms of the legal obligation ; (ii) For an interest-only loan, as defined in § 1026.18(s)(7)(iv)
    , the exp…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) For an adjustable-rate mortgage, as defined in § 1026.18(s)(7)(i) , the expiration
      of the period during which payments based on the introductory fixed interest rate are permitted
      under the terms of the legal obligation ; (ii) For an interest-only loan, as defined in § 1026.18(s)(7)(iv)
      , the expiration of the period during which interest-only payments are permitted under the terms
      of the legal obligation ; and (iii) For a negative amortization loan, as defined in § 1026.18(s)(7)(v)
      , the expiration of the period during which negatively amortizing payments are permitted under the
      terms of the legal obligation . (12) Simultaneous loan means another covered transaction or home
      equity line of credit subject to § 1026.40 that will be secured by the same dwelling and made to
      the same consumer at or before consummation of the covered transaction or, if to be made after consummation,
      will cover closing costs of the first covered transaction. (13) Third-party record means:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) A document or other record prepared or reviewed by an appropriate person other
    than the consumer , the creditor, or the mortgage broker, as defined in § 1026.36(a)(2) , or an agent
    of the creditor or mortgage broker; (ii) A copy of a tax return filed with the Internal Revenue Service
    or a State …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: (i) A document or other record prepared or reviewed by an appropriate person other
      than the consumer , the creditor, or the mortgage broker, as defined in § 1026.36(a)(2) , or an
      agent of the creditor or mortgage broker; (ii) A copy of a tax return filed with the Internal Revenue
      Service or a State taxing authority; (iii) A record the creditor maintains for an account of the
      consumer held by the creditor; or (iv) If the consumer is an employee of the creditor or the mortgage
      broker, a document or other record maintained by the creditor or mortgage broker regarding the consumer
      's employment status or employment income.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-c
  canonical_id: reg-z-1026.43-c
  section: 12 CFR §1026.43(c)
  description: '(c): (c) Repayment ability —(1) General requirement. A creditor shall not make a loan
    that is a covered transaction unless the creditor makes a reasonable and good faith determination
    at or before consummation that the consumer will have a reasonable ability to repay the loan according
    to its terms. (2) …'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(c) Repayment ability —(1) General requirement. A creditor shall not make a loan
      that is a covered transaction unless the creditor makes a reasonable and good faith determination
      at or before consummation that the consumer will have a reasonable ability to repay the loan according
      to its terms. (2) Basis for determination. Except as provided otherwise in paragraphs (d), (e),
      and (f) of this section, in making the repayment ability determination required under paragraph
      (c)(1) of this section, a creditor must consider the following:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) The consumer ''s current or reasonably expected income or assets, other than
    the value of the dwelling , including any real property attached to the dwelling , that secures the
    loan; (ii) If the creditor relies on income from the consumer ''s employment in determining repayment
    ability, the consum…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: (i) The consumer 's current or reasonably expected income or assets, other than the
      value of the dwelling , including any real property attached to the dwelling , that secures the
      loan; (ii) If the creditor relies on income from the consumer 's employment in determining repayment
      ability, the consumer 's current employment status; (iii) The consumer 's monthly payment on the
      covered transaction, calculated in accordance with paragraph (c)(5) of this section; (iv) The consumer
      's monthly payment on any simultaneous loan that the creditor knows or has reason to know will be
      made, calculated in accordance with paragraph (c)(6) of this section;
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-v
  canonical_id: reg-z-1026.43-v
  section: 12 CFR §1026.43(v)
  description: '(v): (v) The consumer ''s monthly payment for mortgage-related obligations; (vi) The consumer
    ''s current debt obligations, alimony, and child support; (vii) The consumer ''s monthly debt -to-income
    ratio or residual income in accordance with paragraph (c)(7) of this section; and (viii) The consumer
    ''s cred…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(v) The consumer ''s monthly payment for mortgage-related obligations; (vi) The
      consumer ''s current debt obligations, alimony, and child support; (vii) The consumer ''s monthly
      debt -to-income ratio or residual income in accordance with paragraph (c)(7) of this section; and
      (viii) The consumer ''s credit history. (3) Verification using third-party records. A creditor must
      verify the information that the creditor relies on in determining a consumer ''s repayment ability
      under § 1026.43(c)(2) using reasonably reliable third-party records, except that:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) For purposes of paragraph (c)(2)(i) of this section, a creditor must verify a
    consumer ''s income or assets that the creditor relies on in accordance with § 1026.43(c)(4); (ii)
    For purposes of paragraph (c)(2)(ii) of this section, a creditor may verify a consumer ''s employment
    status orally if th…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) For purposes of paragraph (c)(2)(i) of this section, a creditor must verify
      a consumer ''s income or assets that the creditor relies on in accordance with § 1026.43(c)(4);
      (ii) For purposes of paragraph (c)(2)(ii) of this section, a creditor may verify a consumer ''s
      employment status orally if the creditor prepares a record of the information obtained orally; and
      (iii) For purposes of paragraph (c)(2)(vi) of this section, if a creditor relies on a consumer ''s
      credit report to verify a consumer ''s current debt obligations and a consumer ''s application states
      a current debt obligation not shown in the consumer ''s credit report, the creditor need not independently
      verify such an obligation . (4) Verification of income or assets. A creditor must verify the amounts
      of income or assets that the creditor relies on under § 1026.43(c)(2)(i) to determine a consumer
      ''s ability to repay a covered transaction using third-party records that provide reasonably reliable
      evidence of the consumer ''s income or assets. A creditor may verify the consumer ''s income using
      a tax-return transcript issued by the Internal Revenue Service (IRS). Examples of other records
      the creditor may use to verify the consumer ''s income or assets include:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) Copies of tax returns the consumer filed with the IRS or a State taxing authority;
    (ii) IRS Form W-2s or similar IRS forms used for reporting wages or tax withholding; (iii) Payroll
    statements, including military Leave and Earnings Statements; (iv) Financial institution records;'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: (i) Copies of tax returns the consumer filed with the IRS or a State taxing authority;
      (ii) IRS Form W-2s or similar IRS forms used for reporting wages or tax withholding; (iii) Payroll
      statements, including military Leave and Earnings Statements; (iv) Financial institution records;
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-v
  canonical_id: reg-z-1026.43-v
  section: 12 CFR §1026.43(v)
  description: '(v): (v) Records from the consumer ''s employer or a third party that obtained information
    from the employer; (vi) Records from a Federal, State , or local government agency stating the consumer
    ''s income from benefits or entitlements; (vii) Receipts from the consumer ''s use of check cashing
    services; and…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(v) Records from the consumer ''s employer or a third party that obtained information
      from the employer; (vi) Records from a Federal, State , or local government agency stating the consumer
      ''s income from benefits or entitlements; (vii) Receipts from the consumer ''s use of check cashing
      services; and (viii) Receipts from the consumer ''s use of a funds transfer service. (5) Payment
      calculation —(i) General rule. Except as provided in paragraph (c)(5)(ii) of this section, a creditor
      must make the consideration required under paragraph (c)(2)(iii) of this section using: (A) The
      fully indexed rate or any introductory interest rate, whichever is greater; and (B) Monthly, fully
      amortizing payments that are substantially equal. (ii) Special rules for loans with a balloon payment,
      interest-only loans, and negative amortization loans. A creditor must make the consideration required
      under paragraph (c)(2)(iii) of this section for: (A) A loan with a balloon payment, as defined in
      § 1026.18(s)(5)(i) , using: (1) The maximum payment scheduled during the first five years after
      the date on which the first regular periodic payment will be due for a loan that is not a higher-priced
      covered transaction; or (2) The maximum payment in the payment schedule, including any balloon payment,
      for a higher-priced covered transaction; (B) An interest-only loan, as defined in § 1026.18(s)(7)(iv)
      , using: (1) The fully indexed rate or any introductory interest rate, whichever is greater; and
      (2) Substantially equal, monthly payments of principal and interest that will repay the loan amount
      over the term of the loan remaining as of the date the loan is recast. (C) A negative amortization
      loan, as defined in § 1026.18(s)(7)(v) , using: (1) The fully indexed rate or any introductory interest
      rate, whichever is greater; and (2) Substantially equal, monthly payments of principal and interest
      that will repay the maximum loan amount over the term of the loan remaining as of the date the loan
      is recast. (6) Payment calculation for simultaneous loans. For purposes of making the evaluation
      required under paragraph (c)(2)(iv) of this section, a creditor must consider, taking into account
      any mortgage-related obligations, a consumer ''s payment on a simultaneous loan that is:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) A covered transaction, by following paragraph (c)(5)of this section; or (ii)
    A home equity line of credit subject to § 1026.40 , by using the periodic payment required under the
    terms of the plan and the amount of credit to be drawn at or before consummation of the covered transaction.
    (7) Month…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) A covered transaction, by following paragraph (c)(5)of this section; or (ii)
      A home equity line of credit subject to § 1026.40 , by using the periodic payment required under
      the terms of the plan and the amount of credit to be drawn at or before consummation of the covered
      transaction. (7) Monthly debt-to-income ratio or residual income —(i) Definitions. For purposes
      of this paragraph (c)(7), the following definitions apply: (A) Total monthly debt obligations. The
      term total monthly debt obligations means the sum of: the payment on the covered transaction, as
      required to be calculated by paragraphs (c)(2)(iii) and (c)(5) of this section; simultaneous loans
      , as required by paragraphs (c)(2)(iv) and (c)(6) of this section; mortgage-related obligations,
      as required by paragraph (c)(2)(v) of this section; and current debt obligations, alimony, and child
      support, as required by paragraph (c)(2)(vi) of this section. (B) Total monthly income. The term
      total monthly income means the sum of the consumer ''s current or reasonably expected income, including
      any income from assets, as required by paragraphs (c)(2)(i) and (c)(4) of this section. (ii) Calculations
      —(A) Monthly debt-to-income ratio. If a creditor considers the consumer ''s monthly debt -to-income
      ratio under paragraph (c)(2)(vii) of this section, the creditor must consider the ratio of the consumer
      ''s total monthly debt obligations to the consumer ''s total monthly income. (B) Monthly residual
      income. If a creditor considers the consumer ''s monthly residual income under paragraph (c)(2)(vii)
      of this section, the creditor must consider the consumer ''s remaining income after subtracting
      the consumer ''s total monthly debt obligations from the consumer ''s total monthly income.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-d
  canonical_id: reg-z-1026.43-d
  section: 12 CFR §1026.43(d)
  description: '(d): (d) Refinancing of non-standard mortgages —(1) Definitions. For purposes of this
    paragraph (d), the following definitions apply:'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(d) Refinancing of non-standard mortgages —(1) Definitions. For purposes of this
      paragraph (d), the following definitions apply:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) Non-standard mortgage. The term non-standard mortgage means a covered transaction
    that is: (A) An adjustable-rate mortgage, as defined in § 1026.18(s)(7)(i) , with an introductory
    fixed interest rate for a period of one year or longer; (B) An interest-only loan, as defined in §
    1026.18(s)(7)(iv)…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) Non-standard mortgage. The term non-standard mortgage means a covered transaction
      that is: (A) An adjustable-rate mortgage, as defined in § 1026.18(s)(7)(i) , with an introductory
      fixed interest rate for a period of one year or longer; (B) An interest-only loan, as defined in
      § 1026.18(s)(7)(iv) ; or (C) A negative amortization loan, as defined in § 1026.18(s)(7)(v) . (ii)
      Standard mortgage. The term standard mortgage means a covered transaction: (A) That provides for
      regular periodic payments that do not: (1) Cause the principal balance to increase; (2) Allow the
      consumer to defer repayment of principal; or (3) Result in a balloon payment, as defined in § 1026.18(s)(5)(i);
      (B) For which the total points and fees payable in connection with the transaction do not exceed
      the amounts specified in paragraph (e)(3) of this section; (C) For which the term does not exceed
      40 years; (D) For which the interest rate is fixed for at least the first five years after consummation;
      and (E) For which the proceeds from the loan are used solely for the following purposes: (1) To
      pay off the outstanding principal balance on the non-standard mortgage; and (2) To pay closing or
      settlement charges required to be disclosed under the Real Estate Settlement Procedures Act, 12
      U.S.C. 2601 et seq. (iii) Refinancing. The term refinancing has the same meaning as in § 1026.20(a)
      . (2) Scope. The provisions of this paragraph (d) apply to the refinancing of a non-standard mortgage
      into a standard mortgage when the following conditions are met:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) The creditor for the standard mortgage is the current holder of the existing
    non-standard mortgage or the servicer acting on behalf of the current holder; (ii) The monthly payment
    for the standard mortgage is materially lower than the monthly payment for the non-standard mortgage,
    as calculated …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: (i) The creditor for the standard mortgage is the current holder of the existing
      non-standard mortgage or the servicer acting on behalf of the current holder; (ii) The monthly payment
      for the standard mortgage is materially lower than the monthly payment for the non-standard mortgage,
      as calculated under paragraph (d)(5) of this section. (iii) The creditor receives the consumer 's
      written application for the standard mortgage no later than two months after the non-standard mortgage
      has recast. (iv) The consumer has made no more than one payment more than 30 days late on the non-standard
      mortgage during the 12 months immediately preceding the creditor's receipt of the consumer 's written
      application for the standard mortgage.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-v
  canonical_id: reg-z-1026.43-v
  section: 12 CFR §1026.43(v)
  description: '(v): (v) The consumer has made no payments more than 30 days late during the six months
    immediately preceding the creditor''s receipt of the consumer ''s written application for the standard
    mortgage; and (vi) If the non-standard mortgage was consummated on or after January 10, 2014, the
    non-standard mortg…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(v) The consumer has made no payments more than 30 days late during the six months
      immediately preceding the creditor''s receipt of the consumer ''s written application for the standard
      mortgage; and (vi) If the non-standard mortgage was consummated on or after January 10, 2014, the
      non-standard mortgage was made in accordance with paragraph (c) or (e) of this section, as applicable.
      (3) Exemption from repayment ability requirements. A creditor is not required to comply with the
      requirements of paragraph (c) of this section if:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) The conditions in paragraph (d)(2) of this section are met; and (ii) The creditor
    has considered whether the standard mortgage likely will prevent a default by the consumer on the
    non-standard mortgage once the loan is recast. (4) Offer of rate discounts and other favorable terms.
    A creditor mak…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) The conditions in paragraph (d)(2) of this section are met; and (ii) The creditor
      has considered whether the standard mortgage likely will prevent a default by the consumer on the
      non-standard mortgage once the loan is recast. (4) Offer of rate discounts and other favorable terms.
      A creditor making a covered transaction under this paragraph (d) may offer to the consumer rate
      discounts and terms that are the same as, or better than, the rate discounts and terms that the
      creditor offers to new consumers, consistent with the creditor''s documented underwriting practices
      and to the extent not prohibited by applicable State or Federal law. (5) Payment calculations. For
      purposes of determining whether the consumer ''s monthly payment for a standard mortgage will be
      materially lower than the monthly payment for the non-standard mortgage, the following provisions
      shall be used:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) Non-standard mortgage. For purposes of the comparison conducted pursuant to paragraph
    (d)(2)(ii) of this section, the creditor must calculate the monthly payment for a non-standard mortgage
    based on substantially equal, monthly, fully amortizing payments of principal and interest using:
    (A) The …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) Non-standard mortgage. For purposes of the comparison conducted pursuant to
      paragraph (d)(2)(ii) of this section, the creditor must calculate the monthly payment for a non-standard
      mortgage based on substantially equal, monthly, fully amortizing payments of principal and interest
      using: (A) The fully indexed rate as of a reasonable period of time before or after the date on
      which the creditor receives the consumer ''s written application for the standard mortgage; (B)
      The term of the loan remaining as of the date on which the recast occurs, assuming all scheduled
      payments have been made up to the recast date and the payment due on the recast date is made and
      credited as of that date; and (C) A remaining loan amount that is: (1) For an adjustable-rate mortgage
      under paragraph (d)(1)(i)(A) of this section, the outstanding principal balance as of the date of
      the recast, assuming all scheduled payments have been made up to the recast date and the payment
      due on the recast date is made and credited as of that date; (2) For an interest-only loan under
      paragraph (d)(1)(i)(B) of this section, the outstanding principal balance as of the date of the
      recast, assuming all scheduled payments have been made up to the recast date and the payment due
      on the recast date is made and credited as of that date; or (3) For a negative amortization loan
      under paragraph (d)(1)(i)(C) of this section, the maximum loan amount , determined after adjusting
      for the outstanding principal balance. (ii) Standard mortgage. For purposes of the comparison conducted
      pursuant to paragraph (d)(2)(ii) of this section, the monthly payment for a standard mortgage must
      be based on substantially equal, monthly, fully amortizing payments based on the maximum interest
      rate that may apply during the first five years after consummation.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-e
  canonical_id: reg-z-1026.43-e
  section: 12 CFR §1026.43(e)
  description: '(e): (e) Qualified mortgages —(1) Safe harbor and presumption of compliance —(i) Safe
    harbor for loans that are not higher-priced covered transactions and for seasoned loans. A creditor
    or assignee of a qualified mortgage complies with the repayment ability requirements of paragraph
    (c) of this section i…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(e) Qualified mortgages —(1) Safe harbor and presumption of compliance —(i) Safe
      harbor for loans that are not higher-priced covered transactions and for seasoned loans. A creditor
      or assignee of a qualified mortgage complies with the repayment ability requirements of paragraph
      (c) of this section if: (A) The loan is a qualified mortgage as defined in paragraph (e)(2), (4),
      (5), (6), or (f) of this section that is not a higher-priced covered transaction, as defined in
      paragraph (b)(4) of this section; or (B) The loan is a qualified mortgage as defined in paragraph
      (e)(7) of this section, regardless of whether the loan is a higher-priced covered transaction. (ii)
      Presumption of compliance for higher-priced covered transactions. (A) A creditor or assignee of
      a qualified mortgage, as defined in paragraph (e)(2), (e)(4), (e)(5), (e)(6), or (f) of this section,
      that is a higher-priced covered transaction, as defined in paragraph (b)(4) of this section, is
      presumed to comply with the repayment ability requirements of paragraph (c) of this section. (B)
      To rebut the presumption of compliance described in paragraph (e)(1)(ii)(A) of this section, it
      must be proven that, despite meeting the prerequisites of paragraph (e)(2), (e)(4), (e)(5), (e)(6),
      or (f) of this section, the creditor did not make a reasonable and good faith determination of the
      consumer ''s repayment ability at the time of consummation, by showing that the consumer ''s income,
      debt obligations, alimony, child support, and the consumer ''s monthly payment (including mortgage-related
      obligations) on the covered transaction and on any simultaneous loans of which the creditor was
      aware at consummation would leave the consumer with insufficient residual income or assets other
      than the value of the dwelling (including any real property attached to the dwelling) that secures
      the loan with which to meet living expenses, including any recurring and material non-debt obligations
      of which the creditor was aware at the time of consummation. (2) Qualified mortgage defined—general.
      Except as provided in paragraph (e)(4), (5), (6), (7), or (f) of this section, a qualified mortgage
      is a covered transaction:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) That provides for regular periodic payments that are substantially equal, except
    for the effect that any interest rate change after consummation has on the payment in the case of
    an adjustable-rate or step-rate mortgage, that do not: (A) Result in an increase of the principal
    balance; (B) Allow …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) That provides for regular periodic payments that are substantially equal, except
      for the effect that any interest rate change after consummation has on the payment in the case of
      an adjustable-rate or step-rate mortgage, that do not: (A) Result in an increase of the principal
      balance; (B) Allow the consumer to defer repayment of principal, except as provided in paragraph
      (f) of this section; or (C) Result in a balloon payment, as defined in § 1026.18(s)(5)(i) , except
      as provided in paragraph (f) of this section; (ii) For which the loan term does not exceed 30 years;
      (iii) For which the total points and fees payable in connection with the loan do not exceed the
      amounts specified in paragraph (e)(3) of this section; (iv) For which the creditor underwrites the
      loan, taking into account the monthly payment for mortgage-related obligations, using: (A) The maximum
      interest rate that may apply during the first five years after the date on which the first regular
      periodic payment will be due; and (B) Periodic payments of principal and interest that will repay
      either: (1) The outstanding principal balance over the remaining term of the loan as of the date
      the interest rate adjusts to the maximum interest rate set forth in paragraph (e)(2)(iv)(A) of this
      section, assuming the consumer will have made all required payments as due prior to that date; or
      (2) The loan amount over the loan term;'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-v
  canonical_id: reg-z-1026.43-v
  section: 12 CFR §1026.43(v)
  description: '(v): (v) For which the creditor, at or before consummation: (A) Considers the consumer
    ''s current or reasonably expected income or assets other than the value of the dwelling (including
    any real property attached to the dwelling) that secures the loan, debt obligations, alimony, child
    support, and monthl…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(v) For which the creditor, at or before consummation: (A) Considers the consumer
      ''s current or reasonably expected income or assets other than the value of the dwelling (including
      any real property attached to the dwelling) that secures the loan, debt obligations, alimony, child
      support, and monthly debt -to-income ratio or residual income, using the amounts determined from
      paragraph (e)(2)(v)(B) of this section. For purposes of this paragraph (e)(2)(v)(A), the consumer
      ''s monthly debt -to-income ratio or residual income is determined in accordance with paragraph
      (c)(7) of this section, except that the consumer ''s monthly payment on the covered transaction,
      including the monthly payment for mortgage-related obligations, is calculated in accordance with
      paragraph (e)(2)(iv) of this section. (B) ( 1 ) Verifies the consumer ''s current or reasonably
      expected income or assets other than the value of the dwelling (including any real property attached
      to the dwelling) that secures the loan using third-party records that provide reasonably reliable
      evidence of the consumer ''s income or assets, in accordance with paragraph (c)(4) of this section;
      and (2) Verifies the consumer ''s current debt obligations, alimony, and child support using reasonably
      reliable third-party records in accordance with paragraph (c)(3) of this section. (vi) For which
      the annual percentage rate does not exceed the average prime offer rate for a comparable transaction
      as of the date the interest rate is set by the amounts specified in paragraphs (e)(2)(vi)(A) through
      (F) of this section. The amounts specified here shall be adjusted annually on January 1 by the annual
      percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) that was reported
      on the preceding June 1. For purposes of this paragraph (e)(2)(vi), the creditor must determine
      the annual percentage rate for a loan for which the interest rate may or will change within the
      first five years after the date on which the first regular periodic payment will be due by treating
      the maximum interest rate that may apply during that five-year period as the interest rate for the
      full term of the loan. See the official commentary to this paragraph (e)(2)(vi) for the current
      dollar amounts. (A) For a first-lien covered transaction with a loan amount greater than or equal
      to $110,260 (indexed for inflation), 2.25 or more percentage points; (B) For a first-lien covered
      transaction with a loan amount greater than or equal to $66,156 (indexed for inflation) but less
      than $110,260 (indexed for inflation), 3.5 or more percentage points; (C) For a first-lien covered
      transaction with a loan amount less than $66,156 (indexed for inflation), 6.5 or more percentage
      points; (D) For a first-lien covered transaction secured by a manufactured home with a loan amount
      less than $110,260 (indexed for inflation), 6.5 or more percentage points; (E) For a subordinate-lien
      covered transaction with a loan amount greater than or equal to $66,156 (indexed for inflation),
      3.5 or more percentage points; (F) For a subordinate-lien covered transaction with a loan amount
      less than $66,156 (indexed for inflation), 6.5 or more percentage points. (3) Limits on points and
      fees for qualified mortgages.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) Except as provided in paragraph (e)(3)(iii) of this section, a covered transaction
    is not a qualified mortgage unless the transaction''s total points and fees, as defined in § 1026.32(b)(1),
    do not exceed: (A) For a loan amount greater than or equal to $100,000 (indexed for inflation): 3
    percent …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) Except as provided in paragraph (e)(3)(iii) of this section, a covered transaction
      is not a qualified mortgage unless the transaction''s total points and fees, as defined in § 1026.32(b)(1),
      do not exceed: (A) For a loan amount greater than or equal to $100,000 (indexed for inflation):
      3 percent of the total loan amount ; (B) For a loan amount greater than or equal to $60,000 (indexed
      for inflation) but less than $100,000 (indexed for inflation): $3,000 (indexed for inflation); (C)
      For a loan amount greater than or equal to $20,000 (indexed for inflation) but less than $60,000
      (indexed for inflation): 5 percent of the total loan amount ; (D) For a loan amount greater than
      or equal to $12,500 (indexed for inflation) but less than $20,000 (indexed for inflation): $1,000
      (indexed for inflation); (E) For a loan amount less than $12,500 (indexed for inflation): 8 percent
      of the total loan amount . (ii) The dollar amounts, including the loan amounts, in paragraph (e)(3)(i)
      of this section shall be adjusted annually on January 1 by the annual percentage change in the Consumer
      Price Index for All Urban Consumers (CPI-U) that was reported on the preceding June 1. See the official
      commentary to this paragraph (e)(3)(ii) for the current dollar amounts. (iii) For covered transactions
      consummated on or before January 10, 2021, if the creditor or assignee determines after consummation
      that the transaction''s total points and fees exceed the applicable limit under paragraph (e)(3)(i)
      of this section, the loan is not precluded from being a qualified mortgage, provided: (A) The loan
      otherwise meets the requirements of paragraphs (e)(2), (e)(4), (e)(5), (e)(6), or (f) of this section,
      as applicable; (B) The creditor or assignee pays to the consumer the amount described in paragraph
      (e)(3)(iv) of this section within 210 days after consummation and prior to the occurrence of any
      of the following events: (1) The institution of any action by the consumer in connection with the
      loan; (2) The receipt by the creditor, assignee, or servicer of written notice from the consumer
      that the transaction''s total points and fees exceed the applicable limit under paragraph (e)(3)(i)
      of this section; or (3) The consumer becoming 60 days past due on the legal obligation ; and (C)
      The creditor or assignee, as applicable, maintains and follows policies and procedures for post-consummation
      review of points and fees and for making payments to consumers in accordance with paragraphs (e)(3)(iii)(B)
      and (e)(3)(iv) of this section. (iv) For purposes of paragraph (e)(3)(iii) of this section, the
      creditor or assignee must pay to the consumer an amount that is not less than the sum of the following:
      (A) The dollar amount by which the transaction''s total points and fees exceeds the applicable limit
      under paragraph (e)(3)(i) of this section; and (B) Interest on the dollar amount described in paragraph
      (e)(3)(iv)(A) of this section, calculated using the contract interest rate applicable during the
      period from consummation until the payment described in this paragraph (e)(3)(iv) is made to the
      consumer . (4) Qualified mortgage defined — other agencies. Notwithstanding paragraph (e)(2) of
      this section, a qualified mortgage is a covered transaction that is defined as a qualified mortgage
      by the U.S. Department of Housing and Urban Development under 24 CFR 201.7 and 24 CFR 203.19 , the
      U.S. Department of Veterans Affairs under 38 CFR 36.4300 and 38 CFR 36.4500 , or the U.S. Department
      of Agriculture under 7 CFR 3555.109 . (5) Qualified mortgage defined—small creditor portfolio loans.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) Notwithstanding paragraph (e)(2) of this section, a qualified mortgage is a covered
    transaction: (A) That satisfies the requirements of paragraph (e)(2) of this section other than the
    requirements of paragraphs (e)(2)(v) and (vi) of this section; (B) For which the creditor: (1) Considers
    and ver…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) Notwithstanding paragraph (e)(2) of this section, a qualified mortgage is a
      covered transaction: (A) That satisfies the requirements of paragraph (e)(2) of this section other
      than the requirements of paragraphs (e)(2)(v) and (vi) of this section; (B) For which the creditor:
      (1) Considers and verifies at or before consummation the consumer ''s current or reasonably expected
      income or assets other than the value of the dwelling (including any real property attached to the
      dwelling) that secures the loan, in accordance with paragraphs (c)(2)(i) and (c)(4) of this section;
      (2) Considers and verifies at or before consummation the consumer ''s current debt obligations,
      alimony, and child support in accordance with paragraphs (c)(2)(vi) and (c)(3) of this section;
      (3) Considers at or before consummation the consumer ''s monthly debt -to-income ratio or residual
      income and verifies the debt obligations and income used to determine that ratio in accordance with
      paragraph (c)(7) of this section, except that the calculation of the payment on the covered transaction
      for purposes of determining the consumer ''s total monthly debt obligations in paragraph (c)(7)(i)(A)
      shall be determined in accordance with paragraph (e)(2)(iv) of this section instead of paragraph
      (c)(5) of this section; (C) That is not subject, at consummation, to a commitment to be acquired
      by another person , other than a person that satisfies the requirements of paragraph (e)(5)(i)(D)
      of this section; and (D) For which the creditor satisfies the requirements stated in § 1026.35(b)(2)(iii)(B)
      and (C) . (ii) A qualified mortgage extended pursuant to paragraph (e)(5)(i) of this section immediately
      loses its status as a qualified mortgage under paragraph (e)(5)(i) if legal title to the qualified
      mortgage is sold, assigned, or otherwise transferred to another person except when: (A) The qualified
      mortgage is sold, assigned, or otherwise transferred to another person three years or more after
      consummation of the qualified mortgage; (B) The qualified mortgage is sold, assigned, or otherwise
      transferred to a creditor that satisfies the requirements of paragraph (e)(5)(i)(D) of this section;
      (C) The qualified mortgage is sold, assigned, or otherwise transferred to another person pursuant
      to a capital restoration plan or other action under 12 U.S.C. 1831o , actions or instructions of
      any person acting as conservator, receiver, or bankruptcy trustee, an order of a State or Federal
      government agency with jurisdiction to examine the creditor pursuant to State or Federal law, or
      an agreement between the creditor and such an agency; or (D) The qualified mortgage is sold, assigned,
      or otherwise transferred pursuant to a merger of the creditor with another person or acquisition
      of the creditor by another person or of another person by the creditor. (6) Qualified mortgage defined—temporary
      balloon-payment qualified mortgage rules.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) Notwithstanding paragraph (e)(2) of this section, a qualified mortgage is a covered
    transaction: (A) That satisfies the requirements of paragraph (f) of this section other than the requirements
    of paragraph (f)(1)(vi); and (B) For which the creditor satisfies the requirements stated in § 1026.35…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) Notwithstanding paragraph (e)(2) of this section, a qualified mortgage is a
      covered transaction: (A) That satisfies the requirements of paragraph (f) of this section other
      than the requirements of paragraph (f)(1)(vi); and (B) For which the creditor satisfies the requirements
      stated in § 1026.35(b)(2)(iii)(B) and (C) . (ii) The provisions of this paragraph (e)(6) apply only
      to covered transactions for which the application was received before April 1, 2016. (7) Qualified
      mortgage defined—seasoned loans —(i) General. Notwithstanding paragraph (e)(2) of this section,
      and except as provided in paragraph (e)(7)(iv) of this section, a qualified mortgage is a first-lien
      covered transaction that: (A) Is a fixed-rate mortgage as defined in § 1026.18(s)(7)(iii) with fully
      amortizing payments as defined in paragraph (b)(2) of this section; (B) Satisfies the requirements
      in paragraphs (e)(2)(i) through (v) of this section; (C) Has met the requirements in paragraph (e)(7)(ii)
      of this section at the end of the seasoning period as defined in paragraph (e)(7)(iv)(C) of this
      section; (D) Satisfies the requirements in paragraph (e)(7)(iii) of this section; and (E) Is not
      a high-cost mortgage as defined in § 1026.32(a) . (ii) Performance requirements. To be a qualified
      mortgage under this paragraph (e)(7) of this section, the covered transaction must have no more
      than two delinquencies of 30 or more days and no delinquencies of 60 or more days at the end of
      the seasoning period. (iii) Portfolio requirements. To be a qualified mortgage under this paragraph
      (e)(7) of this section, the covered transaction must satisfy the following requirements: (A) The
      covered transaction is not subject, at consummation, to a commitment to be acquired by another person
      , except for a sale , assignment, or transfer permitted by paragraph (e)(7)(iii)(B)( 3 ) of this
      section; and (B) Legal title to the covered transaction is not sold, assigned, or otherwise transferred
      to another person before the end of the seasoning period, except that: (1) The covered transaction
      may be sold, assigned, or otherwise transferred to another person pursuant to a capital restoration
      plan or other action under 12 U.S.C. 1831o , actions or instructions of any person acting as conservator,
      receiver, or bankruptcy trustee, an order of a State or Federal government agency with jurisdiction
      to examine the creditor pursuant to State or Federal law, or an agreement between the creditor and
      such an agency; (2) The covered transaction may be sold, assigned, or otherwise transferred pursuant
      to a merger of the creditor with another person or acquisition of the creditor by another person
      or of another person by the creditor; or (3) The covered transaction may be sold, assigned, or otherwise
      transferred once before the end of the seasoning period, provided that the covered transaction is
      not securitized as part of the sale , assignment, or transfer or at any other time before the end
      of the seasoning period as defined in § 1026.43(e)(7)(iv)(C). (iv) Definitions. For purposes of
      paragraph (e)(7) of this section: (A) Delinquency means the failure to make a periodic payment (in
      one full payment or in two or more partial payments) sufficient to cover principal, interest, and
      escrow (if applicable) for a given billing cycle by the date the periodic payment is due under the
      terms of the legal obligation . Other amounts, such as any late fees, are not considered for this
      purpose. (1) A periodic payment is 30 days delinquent when it is not paid before the due date of
      the following scheduled periodic payment. (2) A periodic payment is 60 days delinquent if the consumer
      is more than 30 days delinquent on the first of two sequential scheduled periodic payments and does
      not make both sequential scheduled periodic payments before the due date of the next scheduled periodic
      payment after the two sequential scheduled periodic payments. (3) For any given billing cycle for
      which a consumer ''s payment is less than the periodic payment due, a consumer is not delinquent
      as defined in this paragraph (e)(7) if:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) The servicer chooses not to treat the payment as delinquent for purposes of any
    section of subpart C of Regulation X, 12 CFR part 1024 , if applicable; (ii) The payment is deficient
    by $50 or less; and (iii) There are no more than three such deficient payments treated as not delinquent
    during th…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) The servicer chooses not to treat the payment as delinquent for purposes of
      any section of subpart C of Regulation X, 12 CFR part 1024 , if applicable; (ii) The payment is
      deficient by $50 or less; and (iii) There are no more than three such deficient payments treated
      as not delinquent during the seasoning period. (4) The principal and interest used in determining
      the date a periodic payment sufficient to cover principal, interest, and escrow (if applicable)
      for a given billing cycle becomes due and unpaid are the principal and interest payment amounts
      established by the terms and payment schedule of the loan obligation at consummation, except:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) If a qualifying change as defined in paragraph (e)(7)(iv)(B) of this section
    is made to the loan obligation , the principal and interest used in determining the date a periodic
    payment sufficient to cover principal, interest, and escrow (if applicable) for a given billing cycle
    becomes due and u…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) If a qualifying change as defined in paragraph (e)(7)(iv)(B) of this section
      is made to the loan obligation , the principal and interest used in determining the date a periodic
      payment sufficient to cover principal, interest, and escrow (if applicable) for a given billing
      cycle becomes due and unpaid are the principal and interest payment amounts established by the terms
      and payment schedule of the loan obligation at consummation as modified by the qualifying change.
      (ii) If, due to reasons related to the timing of delivery, set up, or availability for occupancy
      of the dwelling securing the obligation , the first payment due date is modified before the first
      payment due date in the legal obligation at consummation, the modified first payment due date shall
      be considered in lieu of the first payment due date in the legal obligation at consummation in determining
      the date a periodic payment sufficient to cover principal, interest, and escrow (if applicable)
      for a given billing cycle becomes due and unpaid. (5) Except for purposes of making up the deficiency
      amount set forth in paragraph (e)(7)(iv)(A)( 3 )( ii ) of this section, payments from the following
      sources are not considered in assessing delinquency under paragraph (e)(7)(iv)(A) of this section:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) Funds in escrow in connection with the covered transaction; or (ii) Funds paid
    on behalf of the consumer by the creditor, servicer, or assignee of the covered transaction, or any
    other person acting on behalf of such creditor, servicer, or assignee. (B) Qualifying change means
    an agreement that …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) Funds in escrow in connection with the covered transaction; or (ii) Funds paid
      on behalf of the consumer by the creditor, servicer, or assignee of the covered transaction, or
      any other person acting on behalf of such creditor, servicer, or assignee. (B) Qualifying change
      means an agreement that meets the following conditions: (1) The agreement is entered into during
      or after a temporary payment accommodation in connection with a disaster or pandemic-related national
      emergency as defined in paragraph (e)(7)(iv)(D) of this section and ends any pre-existing delinquency
      on the loan obligation upon taking effect; (2) The amount of interest charged over the full term
      of the loan does not increase as a result of the agreement; (3) The servicer does not charge any
      fee in connection with the agreement; and (4) Promptly upon the consumer ''s acceptance of the agreement,
      the servicer waives all late charges, penalties, stop payment fees, or similar charges incurred
      during a temporary payment accommodation in connection with a disaster or pandemic-related national
      emergency, as well as all late charges, penalties, stop payment fees, or similar charges incurred
      during the delinquency that led to a temporary payment accommodation in connection with a disaster
      or pandemic-related national emergency. (C) Seasoning period means a period of 36 months beginning
      on the date on which the first periodic payment is due after consummation of the covered transaction,
      except that: (1) Notwithstanding any other provision of this section, if there is a delinquency
      of 30 days or more at the end of the 36th month of the seasoning period, the seasoning period does
      not end until there is no delinquency; and (2) The seasoning period does not include any period
      during which the consumer is in a temporary payment accommodation extended in connection with a
      disaster or pandemic-related national emergency, provided that during or at the end of the temporary
      payment accommodation there is a qualifying change as defined in paragraph (e)(7)(iv)(B) of this
      section or the consumer cures the loan''s delinquency under its original terms. If during or at
      the end of the temporary payment accommodation in connection with a disaster or pandemic-related
      national emergency there is a qualifying change or the consumer cures the loan''s delinquency under
      its original terms, the seasoning period consists of the period from the date on which the first
      periodic payment was due after consummation of the covered transaction to the beginning of the temporary
      payment accommodation and an additional period immediately after the temporary payment accommodation
      ends, which together must equal at least 36 months. (D) Temporary payment accommodation in connection
      with a disaster or pandemic-related national emergency means temporary payment relief granted to
      a consumer due to financial hardship caused directly or indirectly by a presidentially declared
      emergency or major disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance
      Act ( 42 U.S.C. 5121 et seq. ) or a presidentially declared pandemic-related national emergency
      under the National Emergencies Act ( 50 U.S.C. 1601 et seq. ).'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-f
  canonical_id: reg-z-1026.43-f
  section: 12 CFR §1026.43(f)
  description: '(f): (f) Balloon-payment qualified mortgages made by certain creditors —(1) Exemption.
    Notwithstanding paragraph (e)(2) of this section, a qualified mortgage may provide for a balloon payment,
    provided:'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(f) Balloon-payment qualified mortgages made by certain creditors —(1) Exemption.
      Notwithstanding paragraph (e)(2) of this section, a qualified mortgage may provide for a balloon
      payment, provided:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) The loan satisfies the requirements for a qualified mortgage in paragraphs (e)(2)(i)(A)
    and (e)(2)(ii) and (iii) of this section; (ii) The creditor determines at or before consummation that
    the consumer can make all of the scheduled payments under the terms of the legal obligation , as described…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) The loan satisfies the requirements for a qualified mortgage in paragraphs (e)(2)(i)(A)
      and (e)(2)(ii) and (iii) of this section; (ii) The creditor determines at or before consummation
      that the consumer can make all of the scheduled payments under the terms of the legal obligation
      , as described in paragraph (f)(1)(iv) of this section, together with the consumer ''s monthly payments
      for all mortgage-related obligations and excluding the balloon payment, from the consumer ''s current
      or reasonably expected income or assets other than the dwelling that secures the loan; (iii) The
      creditor: (A) Considers and verifies at or before consummation the consumer ''s current or reasonably
      expected income or assets other than the value of the dwelling (including any real property attached
      to the dwelling) that secures the loan, in accordance with paragraphs (c)(2)(i) and (c)(4) of this
      section; (B) Considers and verifies at or before consummation the consumer ''s current debt obligations,
      alimony, and child support in accordance with paragraphs (c)(2)(vi) and (c)(3) of this section;
      (C) Considers at or before consummation the consumer ''s monthly debt -to-income ratio or residual
      income and verifies the debt obligations and income used to determine that ratio in accordance with
      paragraph (c)(7) of this section, except that the calculation of the payment on the covered transaction
      for purposes of determining the consumer ''s total monthly debt obligations in (c)(7)(i)(A) shall
      be determined in accordance with paragraph (f)(1)(iv)(A) of this section, together with the consumer
      ''s monthly payments for all mortgage-related obligations and excluding the balloon payment; (iv)
      The legal obligation provides for: (A) Scheduled payments that are substantially equal, calculated
      using an amortization period that does not exceed 30 years; (B) An interest rate that does not increase
      over the term of the loan; and (C) A loan term of five years or longer.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-v
  canonical_id: reg-z-1026.43-v
  section: 12 CFR §1026.43(v)
  description: '(v): (v) The loan is not subject, at consummation, to a commitment to be acquired by another
    person , other than a person that satisfies the requirements of paragraph (f)(1)(vi) of this section;
    and (vi) The creditor satisfies the requirements stated in § 1026.35(b)(2)(iii)(A) , (B), and (C).
    (2) Post-co…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(v) The loan is not subject, at consummation, to a commitment to be acquired by
      another person , other than a person that satisfies the requirements of paragraph (f)(1)(vi) of
      this section; and (vi) The creditor satisfies the requirements stated in § 1026.35(b)(2)(iii)(A)
      , (B), and (C). (2) Post-consummation transfer of balloon-payment qualified mortgage. A balloon-payment
      qualified mortgage, extended pursuant to paragraph (f)(1), immediately loses its status as a qualified
      mortgage under paragraph (f)(1) if legal title to the balloon-payment qualified mortgage is sold,
      assigned, or otherwise transferred to another person except when:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) The balloon-payment qualified mortgage is sold, assigned, or otherwise transferred
    to another person three years or more after consummation of the balloon-payment qualified mortgage;
    (ii) The balloon-payment qualified mortgage is sold, assigned, or otherwise transferred to a creditor
    that satisf…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: (i) The balloon-payment qualified mortgage is sold, assigned, or otherwise transferred
      to another person three years or more after consummation of the balloon-payment qualified mortgage;
      (ii) The balloon-payment qualified mortgage is sold, assigned, or otherwise transferred to a creditor
      that satisfies the requirements of paragraph (f)(1)(vi) of this section; (iii) The balloon-payment
      qualified mortgage is sold, assigned, or otherwise transferred to another person pursuant to a capital
      restoration plan or other action under 12 U.S.C. 1831o , actions or instructions of any person acting
      as conservator, receiver or bankruptcy trustee, an order of a State or Federal governmental agency
      with jurisdiction to examine the creditor pursuant to State or Federal law, or an agreement between
      the creditor and such an agency; or (iv) The balloon-payment qualified mortgage is sold, assigned,
      or otherwise transferred pursuant to a merger of the creditor with another person or acquisition
      of the creditor by another person or of another person by the creditor.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-g
  canonical_id: reg-z-1026.43-g
  section: 12 CFR §1026.43(g)
  description: '(g): (g) Prepayment penalties —(1) When permitted. A covered transaction must not include
    a prepayment penalty unless:'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(g) Prepayment penalties —(1) When permitted. A covered transaction must not include
      a prepayment penalty unless:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) The prepayment penalty is otherwise permitted by law; and (ii) The transaction:
    (A) Has an annual percentage rate that cannot increase after consummation; (B) Is a qualified mortgage
    under paragraph (e)(2), (e)(4), (e)(5), (e)(6), or (f) of this section; and (C) Is not a higher-priced
    mortgage l…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) The prepayment penalty is otherwise permitted by law; and (ii) The transaction:
      (A) Has an annual percentage rate that cannot increase after consummation; (B) Is a qualified mortgage
      under paragraph (e)(2), (e)(4), (e)(5), (e)(6), or (f) of this section; and (C) Is not a higher-priced
      mortgage loan, as defined in § 1026.35(a) . (2) Limits on prepayment penalties. A prepayment penalty:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) Must not apply after the three-year period following consummation; and (ii) Must
    not exceed the following percentages of the amount of the outstanding loan balance prepaid: (A) 2
    percent, if incurred during the first two years following consummation; and (B) 1 percent, if incurred
    during the thi…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) Must not apply after the three-year period following consummation; and (ii)
      Must not exceed the following percentages of the amount of the outstanding loan balance prepaid:
      (A) 2 percent, if incurred during the first two years following consummation; and (B) 1 percent,
      if incurred during the third year following consummation. (3) Alternative offer required. A creditor
      must not offer a consumer a covered transaction with a prepayment penalty unless the creditor also
      offers the consumer an alternative covered transaction without a prepayment penalty and the alternative
      covered transaction:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) Has an annual percentage rate that cannot increase after consummation and has
    the same type of interest rate as the covered transaction with a prepayment penalty; for purposes
    of this paragraph (g), the term “type of interest rate” refers to whether a transaction: (A) Is a
    fixed-rate mortgage, a…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) Has an annual percentage rate that cannot increase after consummation and has
      the same type of interest rate as the covered transaction with a prepayment penalty; for purposes
      of this paragraph (g), the term “type of interest rate” refers to whether a transaction: (A) Is
      a fixed-rate mortgage, as defined in § 1026.18(s)(7)(iii) ; or (B) Is a step-rate mortgage, as defined
      in § 1026.18(s)(7)(ii) ; (ii) Has the same loan term as the loan term for the covered transaction
      with a prepayment penalty; (iii) Satisfies the periodic payment conditions under paragraph (e)(2)(i)
      of this section; (iv) Satisfies the points and fees conditions under paragraph (e)(2)(iii) of this
      section, based on the information known to the creditor at the time the transaction is offered;
      and'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-v
  canonical_id: reg-z-1026.43-v
  section: 12 CFR §1026.43(v)
  description: '(v): (v) Is a transaction for which the creditor has a good faith belief that the consumer
    likely qualifies, based on the information known to the creditor at the time the creditor offers the
    covered transaction without a prepayment penalty. (4) Offer through a mortgage broker. If the creditor
    offers a c…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(v) Is a transaction for which the creditor has a good faith belief that the consumer
      likely qualifies, based on the information known to the creditor at the time the creditor offers
      the covered transaction without a prepayment penalty. (4) Offer through a mortgage broker. If the
      creditor offers a covered transaction with a prepayment penalty to the consumer through a mortgage
      broker, as defined in § 1026.36(a)(2) , the creditor must:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) Present the mortgage broker an alternative covered transaction without a prepayment
    penalty that satisfies the requirements of paragraph (g)(3) of this section; and (ii) Establish by
    agreement that the mortgage broker must present the consumer an alternative covered transaction without
    a prepaym…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) Present the mortgage broker an alternative covered transaction without a prepayment
      penalty that satisfies the requirements of paragraph (g)(3) of this section; and (ii) Establish
      by agreement that the mortgage broker must present the consumer an alternative covered transaction
      without a prepayment penalty that satisfies the requirements of paragraph (g)(3) of this section,
      offered by: (A) The creditor; or (B) Another creditor, if the transaction offered by the other creditor
      has a lower interest rate or a lower total dollar amount of discount points and origination points
      or fees. (5) Creditor that is a loan originator. If the creditor is a loan originator, as defined
      in § 1026.36(a)(1) , and the creditor presents the consumer a covered transaction offered by a person
      to which the creditor would assign the covered transaction after consummation, the creditor must
      present the consumer an alternative covered transaction without a prepayment penalty that satisfies
      the requirements of paragraph (g)(3) of this section, offered by:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) The assignee; or (ii) Another person , if the transaction offered by the other
    person has a lower interest rate or a lower total dollar amount of origination discount points and
    points or fees. (6) Applicability. This paragraph (g) applies only if a covered transaction is consummated
    with a prep…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: '(i) The assignee; or (ii) Another person , if the transaction offered by the other
      person has a lower interest rate or a lower total dollar amount of origination discount points and
      points or fees. (6) Applicability. This paragraph (g) applies only if a covered transaction is consummated
      with a prepayment penalty and is not violated if:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-i
  canonical_id: reg-z-1026.43-i
  section: 12 CFR §1026.43(i)
  description: '(i): (i) A covered transaction is consummated without a prepayment penalty; or (ii) The
    creditor and consumer do not consummate a covered transaction.'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: (i) A covered transaction is consummated without a prepayment penalty; or (ii) The
      creditor and consumer do not consummate a covered transaction.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.43-h
  canonical_id: reg-z-1026.43-h
  section: 12 CFR §1026.43(h)
  description: '(h): (h) Evasion; open-end credit. In connection with credit secured by a consumer ''s
    dwelling that does not meet the definition of open-end credit in § 1026.2(a)(20) , a creditor shall
    not structure the loan as an open-end plan to evade the requirements of this section. [ 78 FR 6584
    , Jan. 30, 2013, as …'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.43(a)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.43
    snapshot_id: ca30d1f90ee959aa
    fetched_at: '2026-05-22T18:22:28Z'
    content_hash: sha256:26a890d90e9c1f740c1705ffe7d8c717e2fcba590f4bbfdfa19606b26c89ed38
    paragraph_quote: (h) Evasion; open-end credit. In connection with credit secured by a consumer 's
      dwelling that does not meet the definition of open-end credit in § 1026.2(a)(20) , a creditor shall
      not structure the loan as an open-end plan to evade the requirements of this section. [ 78 FR 6584
      , Jan. 30, 2013, as amended at 78 FR 35502 , June 12, 2013; 78 FR 44718 , July 24, 2013; 78 FR 60442
      , Oct. 1, 2013; 78 FR 63005 , Oct. 23, 2013; 79 FR 65323 , Nov. 3, 2014; 80 FR 59968 , Oct. 2, 2015;
      85 FR 67958 , Oct. 26, 2020; 85 FR 86394 , 86452, Dec. 29, 2020; 86 FR 8283 , Feb. 5, 2021; 86 FR
      60360 , Nov. 2, 2021] Internal Revenue Code of 1986 Housing and Community Development Act of 1974
      Emergency Economic Stabilization Act of 2008 Robert T. Stafford Disaster Relief and Emergency Assistance
      Act National Emergencies Act CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel
      Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy
    drafter_attestation: Verbatim subsection of 12 CFR §1026.43 from Cornell LII snapshot ca30d1f90ee959aa;
      body isolated between nav and notes; substring-verified.
  judgment: false
