If a consumer proves that a lender did not meet the ATR requirements, what is the consumer entitled to?

When a consumer demonstrates that a lender failed to comply with the Ability to Repay (ATR) requirements, the consumer is entitled to certain remedies under the law. The ATR rule is designed to ensure that lenders make reasonable assessments of a borrower's ability to repay a loan, preventing predatory lending practices and financial harm to consumers.

If a lender does not adhere to these requirements, the consumer can claim a variety of damages. In this context, the key entitlement is for the borrower to receive reimbursement for three years' worth of interest that they have paid, along with any attorney fees incurred in connection with the legal proceedings. This provision serves to compensate the consumer for any financial burden they may have suffered due to the lender's oversight and can help facilitate a fair resolution to their claim.

Understanding these remedies is vital for both consumers and mortgage professionals, as it highlights the importance of lenders following ATR guidelines closely to avoid legal repercussions and protect consumers.