source:
  type: regulation
  id: tila-12usc-1639c
  authority: 15 U.S.C. §1639c — Minimum standards for residential mortgage loans
  description: 'TILA statutory ATR/QM provision (Dodd-Frank §1411–1414). Sets the

    ability-to-repay requirement, the qualified-mortgage safe-harbor /

    rebuttable-presumption framework, the prohibition on prepayment

    penalties on non-QMs and the phase-out on QMs, and the prohibition

    on single-premium credit insurance. Implemented in Regulation Z at

    12 CFR §1026.43.

    '
obligations:
- id: tila-12usc-1639c-a
  canonical_id: tila-12usc-1639c-a
  section: 15 U.S.C. §1639c(a)
  description: '(a): (a) Ability to repay (1) In general In accordance with regulations prescribed by
    the Bureau, no creditor may make a residential mortgage loan unless the creditor makes a reasonable
    and good faith determination based on verified and documented information that, at the time the loan
    is consummated, th…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: '(a) Ability to repay (1) In general In accordance with regulations prescribed by
      the Bureau, no creditor may make a residential mortgage loan unless the creditor makes a reasonable
      and good faith determination based on verified and documented information that, at the time the
      loan is consummated, the consumer has a reasonable ability to repay the loan, according to its terms,
      and all applicable taxes, insurance (including mortgage guarantee insurance), and assessments. (2)
      Multiple loans If the creditor knows, or has reason to know, that 1 or more residential mortgage
      loans secured by the same dwelling will be made to the same consumer, the creditor shall make a
      reasonable and good faith determination, based on verified and documented information, that the
      consumer has a reasonable ability to repay the combined payments of all loans on the same dwelling
      according to the terms of those loans and all applicable taxes, insurance (including mortgage guarantee
      insurance), and assessments. (3) Basis for determination A determination under this subsection of
      a consumer’s ability to repay a residential mortgage loan shall include consideration of the consumer’s
      credit history, current income, expected income the consumer is reasonably assured of receiving,
      current obligations, debt-to-income ratio or the residual income the consumer will have after paying
      non-mortgage debt and mortgage-related obligations, employment status, and other financial resources
      other than the consumer’s equity in the dwelling or real property that secures repayment of the
      loan. A creditor shall determine the ability of the consumer to repay using a payment schedule that
      fully amortizes the loan over the term of the loan. (4) Income verification A creditor making a
      residential mortgage loan shall verify amounts of income or assets that such creditor relies on
      to determine repayment ability, including expected income or assets, by reviewing the consumer’s
      Internal Revenue Service Form W–2, tax returns, payroll receipts, financial institution records,
      or other third-party documents that provide reasonably reliable evidence of the consumer’s income
      or assets. In order to safeguard against fraudulent reporting, any consideration of a consumer’s
      income history in making a determination under this subsection shall include the verification of
      such income by the use of— (A) Internal Revenue Service transcripts of tax returns; or (B) a method
      that quickly and effectively verifies income documentation by a third party subject to rules prescribed
      by the Bureau. (5) Exemption With respect to loans made, guaranteed, or insured by Federal departments
      or agencies identified in subsection (b)(3)(B)(ii), such departments or agencies may exempt refinancings
      under a streamlined refinancing from this income verification requirement as long as the following
      conditions are met: (A) The consumer is not 30 days or more past due on the prior existing residential
      mortgage loan. (B) The refinancing does not increase the principal balance outstanding on the prior
      existing residential mortgage loan, except to the extent of fees and charges allowed by the department
      or agency making, guaranteeing, or insuring the refinancing. (C) Total points and fees (as defined
      in section 1602(aa)(4) [1] of this title, other than bona fide third party charges not retained
      by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator) payable
      in connection with the refinancing do not exceed 3 percent of the total new loan amount. (D) The
      interest rate on the refinanced loan is lower than the interest rate of the original loan, unless
      the borrower is refinancing from an adjustable rate to a fixed-rate loan, under guidelines that
      the department or agency shall establish for loans they make, guarantee, or issue. (E) The refinancing
      is subject to a payment schedule that will fully amortize the refinancing in accordance with the
      regulations prescribed by the department or agency making, guaranteeing, or insuring the refinancing.
      (F) The terms of the refinancing do not result in a balloon payment , as defined in subsection (b)(2)(A)(ii).
      (G) Both the residential mortgage loan being refinanced and the refinancing satisfy all requirements
      of the department or agency making, guaranteeing, or insuring the refinancing. (6) Nonstandard loans
      (A) Variable rate loans that defer repayment of any principal or interest For purposes of determining,
      under this subsection, a consumer’s ability to repay a variable rate residential mortgage loan that
      allows or requires the consumer to defer the repayment of any principal or interest, the creditor
      shall use a fully amortizing repayment schedule. (B) Interest-only loans For purposes of determining,
      under this subsection, a consumer’s ability to repay a residential mortgage loan that permits or
      requires the payment of interest only, the creditor shall use the payment amount required to amortize
      the loan by its final maturity. (C) Calculation for negative amortization In making any determination
      under this subsection, a creditor shall also take into consideration any balance increase that may
      accrue from any negative amortization provision. (D) Calculation process For purposes of making
      any determination under this subsection, a creditor shall calculate the monthly payment amount for
      principal and interest on any residential mortgage loan by assuming—'
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-i
  canonical_id: tila-12usc-1639c-i
  section: 15 U.S.C. §1639c(i)
  description: '(i): (i) the loan proceeds are fully disbursed on the date of the consummation of the
    loan; (ii) the loan is to be repaid in substantially equal monthly amortizing payments for principal
    and interest over the entire term of the loan with no balloon payment , unless the loan contract requires
    more rapid r…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (i) the loan proceeds are fully disbursed on the date of the consummation of the
      loan; (ii) the loan is to be repaid in substantially equal monthly amortizing payments for principal
      and interest over the entire term of the loan with no balloon payment , unless the loan contract
      requires more rapid repayment (including balloon payment ), in which case the calculation shall
      be made (I) in accordance with regulations prescribed by the Bureau, with respect to any loan which
      has an annual percentage rate that does not exceed 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 residential mortgage loan; and by 3.5 or more percentage points for a subordinate lien residential
      mortgage loan; or (II) using the contract’s repayment schedule, with respect to a loan which has
      an annual percentage rate, as of the date the interest rate is set, that is at least 1.5 percentage
      points above the average prime offer rate for a first lien residential mortgage loan; and 3.5 percentage
      points above the average prime offer rate for a subordinate lien residential mortgage loan; and
      (iii) the interest rate over the entire term of the loan is a fixed rate equal to the fully indexed
      rate at the time of the loan closing, without considering the introductory rate. (E) Refinance of
      hybrid loans with current lender In considering any application for refinancing an existing hybrid
      loan by the creditor into a standard loan to be made by the same creditor in any case in which there
      would be a reduction in monthly payment and the mortgagor has not been delinquent on any payment
      on the existing hybrid loan, the creditor may—
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-i
  canonical_id: tila-12usc-1639c-i
  section: 15 U.S.C. §1639c(i)
  description: '(i): (i) consider the mortgagor’s good standing on the existing mortgage; (ii) consider
    if the extension of new credit would prevent a likely default should the original mortgage reset and
    give such concerns a higher priority as an acceptable underwriting practice; and (iii) offer rate
    discounts and othe…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (i) consider the mortgagor’s good standing on the existing mortgage; (ii) consider
      if the extension of new credit would prevent a likely default should the original mortgage reset
      and give such concerns a higher priority as an acceptable underwriting practice; and (iii) offer
      rate discounts and other favorable terms to such mortgagor that would be available to new customers
      with high credit ratings based on such underwriting practice. (7) Fully-indexed rate defined For
      purposes of this subsection, the term “ fully indexed rate ” means the index rate prevailing on
      a residential mortgage loan at the time the loan is made plus the margin that will apply after the
      expiration of any introductory interest rates. (8) Reverse mortgages and bridge loans This subsection
      shall not apply with respect to any reverse mortgage or temporary or bridge loan with a term of
      12 months or less, including to any loan to purchase a new dwelling where the consumer plans to
      sell a different dwelling within 12 months. (9) Seasonal income If documented income, including
      income from a small business, is a repayment source for a residential mortgage loan, a creditor
      may consider the seasonality and irregularity of such income in the underwriting of and scheduling
      of payments for such credit.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-b
  canonical_id: tila-12usc-1639c-b
  section: 15 U.S.C. §1639c(b)
  description: '(b): (b) Presumption of ability to repay (1) In general Any creditor with respect to any
    residential mortgage loan, and any assignee of such loan subject to liability under this subchapter,
    may presume that the loan has met the requirements of subsection (a), if the loan is a qualified mortgage
    . (2) Def…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: '(b) Presumption of ability to repay (1) In general Any creditor with respect to
      any residential mortgage loan, and any assignee of such loan subject to liability under this subchapter,
      may presume that the loan has met the requirements of subsection (a), if the loan is a qualified
      mortgage . (2) Definitions For purposes of this subsection, the following definitions shall apply:
      (A) Qualified mortgage The term “ qualified mortgage ” means any residential mortgage loan—'
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-i
  canonical_id: tila-12usc-1639c-i
  section: 15 U.S.C. §1639c(i)
  description: '(i): (i) for which the regular periodic payments for the loan may not— (I) result in an
    increase of the principal balance; or (II) except as provided in subparagraph (E), allow the consumer
    to defer repayment of principal; (ii) except as provided in subparagraph (E), the terms of which do
    not result in a…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (i) for which the regular periodic payments for the loan may not— (I) result in an
      increase of the principal balance; or (II) except as provided in subparagraph (E), allow the consumer
      to defer repayment of principal; (ii) except as provided in subparagraph (E), the terms of which
      do not result in a balloon payment , where a “ balloon payment ” is a scheduled payment that is
      more than twice as large as the average of earlier scheduled payments; (iii) for which the income
      and financial resources relied upon to qualify the obligors on the loan are verified and documented;
      (iv) in the case of a fixed rate loan, for which the underwriting process is based on a payment
      schedule that fully amortizes the loan over the loan term and takes into account all applicable
      taxes, insurance, and assessments;
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-v
  canonical_id: tila-12usc-1639c-v
  section: 15 U.S.C. §1639c(v)
  description: '(v): (v) in the case of an adjustable rate loan, for which the underwriting is based on
    the maximum rate permitted under the loan during the first 5 years, and a payment schedule that fully
    amortizes the loan over the loan term and takes into account all applicable taxes, insurance, and
    assessments; (vi)…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (v) in the case of an adjustable rate loan, for which the underwriting is based on
      the maximum rate permitted under the loan during the first 5 years, and a payment schedule that
      fully amortizes the loan over the loan term and takes into account all applicable taxes, insurance,
      and assessments; (vi) that complies with any guidelines or regulations established by the Bureau
      relating to ratios of total monthly debt to monthly income or alternative measures of ability to
      pay regular expenses after payment of total monthly debt, taking into account the income levels
      of the borrower and such other factors as the Bureau may determine relevant and consistent with
      the purposes described in paragraph (3)(B)(i); (vii) for which the total points and fees (as defined
      in subparagraph (C)) payable in connection with the loan do not exceed 3 percent of the total loan
      amount; (viii) for which the term of the loan does not exceed 30 years, except as such term may
      be extended under paragraph (3), such as in high-cost areas; and (ix) in the case of a reverse mortgage
      (except for the purposes of subsection (a) of this section, to the extent that such mortgages are
      exempt altogether from those requirements), a reverse mortgage which meets the standards for a qualified
      mortgage , as set by the Bureau in rules that are consistent with the purposes of this subsection.
      (B) Average prime offer rate The term “ average prime offer rate ” means the average prime offer
      rate for a comparable transaction as of the date on which the interest rate for the transaction
      is set, as published by the Bureau.. [2] (C) Points and fees
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-i
  canonical_id: tila-12usc-1639c-i
  section: 15 U.S.C. §1639c(i)
  description: '(i): (i) In general For purposes of subparagraph (A), the term “ points and fees ” means
    points and fees as defined by section 1602(aa)(4) 1 of this title (other than bona fide third party
    charges not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage
    originator). …'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: '(i) In general For purposes of subparagraph (A), the term “ points and fees ” means
      points and fees as defined by section 1602(aa)(4) 1 of this title (other than bona fide third party
      charges not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage
      originator). (ii) Computation For purposes of computing the total points and fees under this subparagraph,
      the total points and fees shall exclude either of the amounts described in the following subclauses,
      but not both: (I) Up to and including 2 bona fide discount points payable by the consumer in connection
      with the mortgage, but only if the interest rate from which the mortgage’s interest rate will be
      discounted does not exceed by more than 1 percentage point the average prime offer rate. (II) Unless
      2 bona fide discount points have been excluded under subclause (I), up to and including 1 bona fide
      discount point payable by the consumer in connection with the mortgage, but only if the interest
      rate from which the mortgage’s interest rate will be discounted does not exceed by more than 2 percentage
      points the average prime offer rate. (iii) Bona fide discount points defined For purposes of clause
      (ii), the term “ bona fide discount points ” means loan discount points which are knowingly paid
      by the consumer for the purpose of reducing, and which in fact result in a bona fide reduction of,
      the interest rate or time-price differential applicable to the mortgage. (iv) Interest rate reduction
      Subclauses (I) and (II) of clause (ii) shall not apply to discount points used to purchase an interest
      rate reduction unless the amount of the interest rate reduction purchased is reasonably consistent
      with established industry norms and practices for secondary mortgage market transactions. (D) Smaller
      loans The Bureau shall prescribe rules adjusting the criteria under subparagraph (A)(vii) in order
      to permit lenders that extend smaller loans to meet the requirements of the presumption of compliance
      under paragraph (1). In prescribing such rules, the Bureau shall consider the potential impact of
      such rules on rural areas and other areas where home values are lower. (E) Balloon loans The Bureau
      may, by regulation, provide that the term “ qualified mortgage ” includes a balloon loan—'
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-i
  canonical_id: tila-12usc-1639c-i
  section: 15 U.S.C. §1639c(i)
  description: '(i): (i) that meets all of the criteria for a qualified mortgage under subparagraph (A)
    (except clauses (i)(II), (ii), (iv), and (v) of such subparagraph); (ii) for which the creditor makes
    a determination that the consumer is able to make all scheduled payments, except the balloon payment
    , out of incom…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (i) that meets all of the criteria for a qualified mortgage under subparagraph (A)
      (except clauses (i)(II), (ii), (iv), and (v) of such subparagraph); (ii) for which the creditor
      makes a determination that the consumer is able to make all scheduled payments, except the balloon
      payment , out of income or assets other than the collateral; (iii) for which the underwriting is
      based on a payment schedule that fully amortizes the loan over a period of not more than 30 years
      and takes into account all applicable taxes, insurance, and assessments; and (iv) that is extended
      by a creditor that— (I) operates in rural or underserved areas; (II) together with all affiliates,
      has total annual residential mortgage loan originations that do not exceed a limit set by the Bureau;
      (III) retains the balloon loans in portfolio; and (IV) meets any asset size threshold and any other
      criteria as the Bureau may establish, consistent with the purposes of this part. (F) Safe harbor
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-i
  canonical_id: tila-12usc-1639c-i
  section: 15 U.S.C. §1639c(i)
  description: '(i): (i) Definitions In this subparagraph— (I) the term “ covered institution ” means
    an insured depository institution or an insured credit union that, together with its affiliates, has
    less than $10,000,000,000 in total consolidated assets; (II) the term “ insured credit union ” has
    the meaning given t…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (i) Definitions In this subparagraph— (I) the term “ covered institution ” means
      an insured depository institution or an insured credit union that, together with its affiliates,
      has less than $10,000,000,000 in total consolidated assets; (II) the term “ insured credit union
      ” has the meaning given the term in section 1752 of title 12 ; (III) the term “ insured depository
      institution ” has the meaning given the term in section 1813 of title 12 ; (IV) the term “ interest-only
      ” means that, under the terms of the legal obligation, one or more of the periodic payments may
      be applied solely to accrued interest and not to loan principal; and (V) the term “ negative amortization
      ” means payment of periodic payments that will result in an increase in the principal balance under
      the terms of the legal obligation. (ii) Safe harbor In this section— (I) the term “ qualified mortgage
      ” includes any residential mortgage loan— (aa) that is originated and retained in portfolio by a
      covered institution ; (bb) that is in compliance with the limitations with respect to prepayment
      penalties described in subsections (c)(1) and (c)(3); (cc) that is in compliance with the requirements
      of clause (vii) of subparagraph (A); (dd) that does not have negative amortization or interest-only
      features; and (ee) for which the covered institution considers and documents the debt, income, and
      financial resources of the consumer in accordance with clause (iv); and (II) a residential mortgage
      loan described in subclause (I) shall be deemed to meet the requirements of subsection (a). (iii)
      Exception for certain transfers A residential mortgage loan described in clause (ii)(I) shall not
      qualify for the safe harbor under clause (ii) if the legal title to the residential mortgage loan
      is sold, assigned, or otherwise transferred to another person unless the residential mortgage loan
      is sold, assigned, or otherwise transferred— (I) to another person by reason of the bankruptcy or
      failure of a covered institution ; (II) to a covered institution so long as the loan is retained
      in portfolio by the covered institution to which the loan is sold, assigned, or otherwise transferred;
      (III) pursuant to a merger of a covered institution with another person or the acquisition of a
      covered institution by another person or of another person by a covered institution , so long as
      the loan is retained in portfolio by the person to whom the loan is sold, assigned, or otherwise
      transferred; or (IV) to a wholly owned subsidiary of a covered institution , provided that, after
      the sale, assignment, or transfer, the residential mortgage loan is considered to be an asset of
      the covered institution for regulatory accounting purposes. (iv) Consideration and documentation
      requirements The consideration and documentation requirements described in clause (ii)(I)(ee) shall—
      (I) not be construed to require compliance with, or documentation in accordance with, appendix Q
      to part 1026 of title 12, Code of Federal Regulations, or any successor regulation; and (II) be
      construed to permit multiple methods of documentation. (3) Regulations (A) In general The Bureau
      shall prescribe regulations to carry out the purposes of this subsection. (B) Revision of safe harbor
      criteria
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-i
  canonical_id: tila-12usc-1639c-i
  section: 15 U.S.C. §1639c(i)
  description: '(i): (i) In general The Bureau may prescribe regulations that revise, add to, or subtract
    from the criteria that define a qualified mortgage upon a finding that such regulations are necessary
    or proper to ensure that responsible, affordable mortgage credit remains available to consumers in
    a manner consi…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: '(i) In general The Bureau may prescribe regulations that revise, add to, or subtract
      from the criteria that define a qualified mortgage upon a finding that such regulations are necessary
      or proper to ensure that responsible, affordable mortgage credit remains available to consumers
      in a manner consistent with the purposes of this section, necessary and appropriate to effectuate
      the purposes of this section and section 1639b of this title , to prevent circumvention or evasion
      thereof, or to facilitate compliance with such sections. (ii) Loan definition The following agencies
      shall, in consultation with the Bureau, prescribe rules defining the types of loans they insure,
      guarantee, or administer, as the case may be, that are qualified mortgages for purposes of paragraph
      (2)(A), and such rules may revise, add to, or subtract from the criteria used to define a qualified
      mortgage under paragraph (2)(A), upon a finding that such rules are consistent with the purposes
      of this section and section 1639b of this title , to prevent circumvention or evasion thereof, or
      to facilitate compliance with such sections: (I) The Department of Housing and Urban Development
      , with regard to mortgages insured under the National Housing Act [ 12 U.S.C. 1701 et seq.]. (II)
      The Department of Veterans Affairs , with regard to a loan made or guaranteed by the Secretary of
      Veterans Affairs . (III) The Department of Agriculture , with regard [3] loans guaranteed by the
      Secretary of Agriculture pursuant to section 1472(h) of title 42 . (IV) The Rural Housing Service,
      with regard to loans insured by the Rural Housing Service. (C) Consideration of underwriting requirements
      for Property Assessed Clean Energy financing'
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-i
  canonical_id: tila-12usc-1639c-i
  section: 15 U.S.C. §1639c(i)
  description: '(i): (i) Definition In this subparagraph, the term “ Property Assessed Clean Energy financing
    ” means financing to cover the costs of home improvements that results in a tax assessment on the
    real property of the consumer. (ii) Regulations The Bureau shall prescribe regulations that carry
    out the purpose…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (i) Definition In this subparagraph, the term “ Property Assessed Clean Energy financing
      ” means financing to cover the costs of home improvements that results in a tax assessment on the
      real property of the consumer. (ii) Regulations The Bureau shall prescribe regulations that carry
      out the purposes of subsection (a) and apply section 1640 of this title with respect to violations
      under subsection (a) of this section with respect to Property Assessed Clean Energy financing, which
      shall account for the unique nature of Property Assessed Clean Energy financing. (iii) Collection
      of information and consultation In prescribing the regulations under this subparagraph, the Bureau—
      (I) may collect such information and data that the Bureau determines is necessary; and (II) shall
      consult with State and local governments and bond-issuing authorities.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-c
  canonical_id: tila-12usc-1639c-c
  section: 15 U.S.C. §1639c(c)
  description: '(c): (c) Prohibition on certain prepayment penalties (1) Prohibited on certain loans (A)
    In general A residential mortgage loan that is not a “ qualified mortgage ”, as defined under subsection
    (b)(2), may not contain terms under which a consumer must pay a prepayment penalty for paying all
    or part of th…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (c) Prohibition on certain prepayment penalties (1) Prohibited on certain loans (A)
      In general A residential mortgage loan that is not a “ qualified mortgage ”, as defined under subsection
      (b)(2), may not contain terms under which a consumer must pay a prepayment penalty for paying all
      or part of the principal after the loan is consummated. (B) Exclusions For purposes of this subsection,
      a “ qualified mortgage ” may not include a residential mortgage loan that—
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-i
  canonical_id: tila-12usc-1639c-i
  section: 15 U.S.C. §1639c(i)
  description: '(i): (i) has an adjustable rate; or (ii) has an annual percentage rate that exceeds the
    average prime offer rate for a comparable transaction, as of the date the interest rate is set— (I)
    by 1.5 or more percentage points, in the case of a first lien residential mortgage loan having a original
    principal o…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: '(i) has an adjustable rate; or (ii) has an annual percentage rate that exceeds the
      average prime offer rate for a comparable transaction, as of the date the interest rate is set—
      (I) by 1.5 or more percentage points, in the case of a first lien residential mortgage loan having
      a original principal obligation amount that is equal to or less than the amount of the maximum limitation
      on the original principal obligation of mortgage in effect for a residence of the applicable size,
      as of the date of such interest rate set, pursuant to the 6th sentence of section 1454(a)(2) of
      title 12 ; (II) by 2.5 or more percentage points, in the case of a first lien residential mortgage
      loan having a original principal obligation amount that is more than the amount of the maximum limitation
      on the original principal obligation of mortgage in effect for a residence of the applicable size,
      as of the date of such interest rate set, pursuant to the 6th sentence of section 1454(a)(2) of
      title 12 ; and (III) by 3.5 or more percentage points, in the case of a subordinate lien residential
      mortgage loan. (2) Publication of average prime offer rate and APR thresholds The Bureau— (A) shall
      publish, and update at least weekly, average prime offer rates ; (B) may publish multiple rates
      based on varying types of mortgage transactions; and (C) shall adjust the thresholds established
      under subclause (I), (II), and (III) of paragraph (1)(B)(ii) as necessary to reflect significant
      changes in market conditions and to effectuate the purposes of the Mortgage Reform and Anti-Predatory
      Lending Act . (3) Phased-out penalties on qualified mortgages A qualified mortgage (as defined in
      subsection (b)(2)) may not contain terms under which a consumer must pay a prepayment penalty for
      paying all or part of the principal after the loan is consummated in excess of the following limitations:
      (A) During the 1-year period beginning on the date the loan is consummated, the prepayment penalty
      shall not exceed an amount equal to 3 percent of the outstanding balance on the loan. (B) During
      the 1-year period beginning after the period described in subparagraph (A), the prepayment penalty
      shall not exceed an amount equal to 2 percent of the outstanding balance on the loan. (C) During
      the 1-year period beginning after the 1-year period described in subparagraph (B), the prepayment
      penalty shall not exceed an amount equal to 1 percent of the outstanding balance on the loan. (D)
      After the end of the 3-year period beginning on the date the loan is consummated, no prepayment
      penalty may be imposed on a qualified mortgage . (4) Option for no prepayment penalty required A
      creditor may not offer a consumer a residential mortgage loan product that has a prepayment penalty
      for paying all or part of the principal after the loan is consummated as a term of the loan without
      offering the consumer a residential mortgage loan product that does not have a prepayment penalty
      as a term of the loan.'
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-d
  canonical_id: tila-12usc-1639c-d
  section: 15 U.S.C. §1639c(d)
  description: '(d): (d) Single premium credit insurance prohibited No creditor may finance, directly
    or indirectly, in connection with any residential mortgage loan or with any extension of credit under
    an open end consumer credit plan secured by the principal dwelling of the consumer, any credit life,
    credit disabilit…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (d) Single premium credit insurance prohibited No creditor may finance, directly
      or indirectly, in connection with any residential mortgage loan or with any extension of credit
      under an open end consumer credit plan secured by the principal dwelling of the consumer, any credit
      life, credit disability, credit unemployment, or credit property insurance, or any other accident,
      loss-of-income, life, or health insurance, or any payments directly or indirectly for any debt cancellation
      or suspension agreement or contract, except that— (1) insurance premiums or debt cancellation or
      suspension fees calculated and paid in full on a monthly basis shall not be considered financed
      by the creditor ; and (2) this subsection shall not apply to credit unemployment insurance for which
      the unemployment insurance premiums are reasonable, the creditor receives no direct or indirect
      compensation in connection with the unemployment insurance premiums, and the unemployment insurance
      premiums are paid pursuant to another insurance contract and not paid to an affiliate of the creditor
      .
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-e
  canonical_id: tila-12usc-1639c-e
  section: 15 U.S.C. §1639c(e)
  description: '(e): (e) Arbitration (1) In general No residential mortgage loan and no extension of credit
    under an open end consumer credit plan secured by the principal dwelling of the consumer may include
    terms which require arbitration or any other nonjudicial procedure as the method for resolving any
    controversy o…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (e) Arbitration (1) In general No residential mortgage loan and no extension of credit
      under an open end consumer credit plan secured by the principal dwelling of the consumer may include
      terms which require arbitration or any other nonjudicial procedure as the method for resolving any
      controversy or settling any claims arising out of the transaction. (2) Post-controversy agreements
      Subject to paragraph (3), paragraph (1) shall not be construed as limiting the right of the consumer
      and the creditor or any assignee to agree to arbitration or any other nonjudicial procedure as the
      method for resolving any controversy at any time after a dispute or claim under the transaction
      arises. (3) No waiver of statutory cause of action No provision of any residential mortgage loan
      or of any extension of credit under an open end consumer credit plan secured by the principal dwelling
      of the consumer, and no other agreement between the consumer and the creditor relating to the residential
      mortgage loan or extension of credit referred to in paragraph (1), shall be applied or interpreted
      so as to bar a consumer from bringing an action in an appropriate district court of the United States,
      or any other court of competent jurisdiction, pursuant to section 1640 of this title or any other
      provision of law, for damages or other relief in connection with any alleged violation of this section,
      any other provision of this subchapter, or any other Federal law.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-f
  canonical_id: tila-12usc-1639c-f
  section: 15 U.S.C. §1639c(f)
  description: '(f): (f) Mortgages with negative amortization No creditor may extend credit to a borrower
    in connection with a consumer credit transaction under an open or closed end consumer credit plan
    secured by a dwelling or residential real property that includes a dwelling, other than a reverse
    mortgage, that prov…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (f) Mortgages with negative amortization No creditor may extend credit to a borrower
      in connection with a consumer credit transaction under an open or closed end consumer credit plan
      secured by a dwelling or residential real property that includes a dwelling, other than a reverse
      mortgage, that provides or permits a payment plan that may, at any time over the term of the extension
      of credit, result in negative amortization unless, before such transaction is consummated— (1) the
      creditor provides the consumer with a statement that— (A) the pending transaction will or may, as
      the case may be, result in negative amortization ; (B) describes negative amortization in such manner
      as the Bureau shall prescribe; (C) negative amortization increases the outstanding principal balance
      of the account; and (D) negative amortization reduces the consumer’s equity in the dwelling or real
      property; and (2) in the case of a first-time borrower with respect to a residential mortgage loan
      that is not a qualified mortgage , the first-time borrower provides the creditor with sufficient
      documentation to demonstrate that the consumer received homeownership counseling from organizations
      or counselors certified by the Secretary of Housing and Urban Development as competent to provide
      such counseling.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-g
  canonical_id: tila-12usc-1639c-g
  section: 15 U.S.C. §1639c(g)
  description: '(g): (g) Protection against loss of anti-deficiency protection (1) Definition For purposes
    of this subsection, the term “ anti-deficiency law ” means the law of any State which provides that,
    in the event of foreclosure on the residential property of a consumer securing a mortgage, the consumer
    is not li…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (g) Protection against loss of anti-deficiency protection (1) Definition For purposes
      of this subsection, the term “ anti-deficiency law ” means the law of any State which provides that,
      in the event of foreclosure on the residential property of a consumer securing a mortgage, the consumer
      is not liable, in accordance with the terms and limitations of such State law, for any deficiency
      between the sale price obtained on such property through foreclosure and the outstanding balance
      of the mortgage. (2) Notice at time of consummation In the case of any residential mortgage loan
      that is, or upon consummation will be, subject to protection under an anti-deficiency law , the
      creditor or mortgage originator shall provide a written notice to the consumer describing the protection
      provided by the anti-deficiency law and the significance for the consumer of the loss of such protection
      before such loan is consummated. (3) Notice before refinancing that would cause loss of protection
      In the case of any residential mortgage loan that is subject to protection under an anti-deficiency
      law , if a creditor or mortgage originator provides an application to a consumer, or receives an
      application from a consumer, for any type of refinancing for such loan that would cause the loan
      to lose the protection of such anti-deficiency law , the creditor or mortgage originator shall provide
      a written notice to the consumer describing the protection provided by the anti-deficiency law and
      the significance for the consumer of the loss of such protection before any agreement for any such
      refinancing is consummated.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-h
  canonical_id: tila-12usc-1639c-h
  section: 15 U.S.C. §1639c(h)
  description: '(h): (h) Policy regarding acceptance of partial payment In the case of any residential
    mortgage loan, a creditor shall disclose prior to settlement or, in the case of a person becoming
    a creditor with respect to an existing residential mortgage loan, at the time such person becomes
    a creditor — (1) the c…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (h) Policy regarding acceptance of partial payment In the case of any residential
      mortgage loan, a creditor shall disclose prior to settlement or, in the case of a person becoming
      a creditor with respect to an existing residential mortgage loan, at the time such person becomes
      a creditor — (1) the creditor ’s policy regarding the acceptance of partial payments; and (2) if
      partial payments are accepted, how such payments will be applied to such mortgage and if such payments
      will be placed in escrow.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1639c-i
  canonical_id: tila-12usc-1639c-i
  section: 15 U.S.C. §1639c(i)
  description: '(i): (i) Timeshare plans This section and any regulations promulgated under this section
    do not apply to an extension of credit relating to a plan described in section 101(53D) of title 11.
    ( Pub. L. 90–321, title I, § 129C , as added and amended Pub. L. 111–203, title X, § 1100A(2) , title
    XIV, §§ 1411(…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639c(a)(1)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639c
    snapshot_id: 6ad557a3b8ba908f
    fetched_at: '2026-05-22T11:32:40Z'
    content_hash: sha256:df7753f887f1c21f5074a8caec73f12688e449c4cdf1b94f8b5940d50cd3d9d0
    paragraph_quote: (i) Timeshare plans This section and any regulations promulgated under this section
      do not apply to an extension of credit relating to a plan described in section 101(53D) of title
      11. ( Pub. L. 90–321, title I, § 129C , as added and amended Pub. L. 111–203, title X, § 1100A(2)
      , title XIV, §§ 1411(a)(2), 1412, 1414(a), (c), (d), July 21, 2010 , 124 Stat. 2107 , 2142, 2145,
      2149, 2152; Pub. L. 114–94, div. G, title LXXXIX, § 89003(1) , Dec. 4, 2015 , 129 Stat. 1800 ; Pub.
      L. 115–174, title I, § 101 , title III, § 307, May 24, 2018 , 132 Stat. 1297 , 1347.) [1] See References
      in Text note below. [2] So in original. [3] So in original. Probably should be followed by “to”.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639c from Cornell LII snapshot 6ad557a3b8ba908f;
      body isolated between nav and notes; substring-verified.
  judgment: false
