Ability-to-Repay / Qualified Mortgage (ATR/QM)

The ability-to-repay (ATR) requirement under the Consumer Financial Protection Bureau's mortgage rules obligates lenders to verify that a borrower can reasonably afford the loan, considering income, assets, debts and other expenses. A Qualified Mortgage (QM) is a loan that meets ATR standards plus additional criteria such as limits on points, fees, and loan terms, giving lenders certain liability protections.