1. (a) A creditor may not make a high cost home loan without regard to repayment ability.
2. (b) If a creditor presents evidence that the creditor followed commercially reasonable practices in determining the borrower's debt to income ratio, there is a rebuttable presumption that the creditor made the high cost home loan with due regard to repayment ability. For purposes of this section, there is a rebuttable presumption that the borrower's statement of income provided to the creditor is true and complete.

3. (c) Commercially reasonable practices include the use of:

   1. (1) the debt to income ratio:

      1. (A) listed in 38 CFR 36.4337(c)(1); and
      2. (B) defined in 38 CFR 36.4337(d); and

   2. (2) the residual income guidelines established under:

      1. (A) 38 CFR 36.4337(e); and

      2. (B) United States Department of Veterans Affairs form 26-6393.

         [Pre-2026 Revision Citation: 24-9-4-8.]

As added by P.L.115-2026, SEC.97.