TOPIC: ATR

Ability to Repay & Qualified Mortgage Rules

Employee at a bank ($711MUSA)
In todays low rate environment many borrowers want to stick with a fixed rate product, regardless of the amount of fees. The problem is often the fees exceed ATR/QM thresholds. In a "normal" rate environment borrowers are more inclined to go with a different product, instead of paying the higher fees. How are some banks dealing with this today? We want to qualify these borrowers for the fixed rate product but ATR/QM (lets say the 3% threshold of fees) holds us back. Would there be a fair lending concern if a separate rate sheet item was added to increase the rate for borrowers who otherwise wouldn't qualify, therefore we can lower our fees for them to get them qualified? Any thoughts on this would be greatly appreciated. 

Thank you