What does "Rebuttable presumption" refer to in the context of loans?

In the context of loans, "Rebuttable presumption" specifically relates to the Ability to Repay (ATR) requirement. This principle allows consumers to challenge the lender regarding the loan's compliance with the ATR standards. When a lender makes a mortgage loan under certain conditions, there is a presumption that the loan complies with the ATR requirement. However, this presumption can be countered or rebutted if the consumer presents evidence that the lender failed to conduct a proper assessment of their ability to repay the loan.

This concept is significant because it provides consumers with an avenue to assert their rights and seek remedies if they believe the lender has not adhered to required lending practices. It maintains a balance in the lending process by holding lenders accountable while also guiding consumers in understanding their rights regarding loan terms.