abilitytorepay
Ability to repay, often abbreviated ATR, is a principle in consumer lending that requires lenders to determine and verify that a borrower has the financial means to repay a loan according to its terms. The concept is most closely associated with residential mortgage lending in the United States, where it became central to post-crisis reform.
In the United States, ATR was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act
Lenders are expected to consider several underwriting factors, including current income or assets, employment status, the
Scope-wise, ATR principally applies to residential mortgage loans, though different jurisdictions and product types may have