Rebuttable Presumption

AFR permits Permitted

• A qualified mortgage that is a higher-priced covered transaction (APR > APOR + 1.15 + annual MIP) has only a rebuttable presumption of compliance with the ability-to-repay requirement, even though each element of the “qualified mortgage” definition is set. The rule is intended to provide greater protection for borrowers by providing only a rebuttable presumption of compliance for a higher-priced covered transaction.
• If a loan is a Rebuttable Presumption all HPML Provisions must be applied to the loan.