Which factor is NOT considered when determining if the Ability to Repay (ATR) requirement has been met?

The Ability to Repay (ATR) requirement is a critical component of the mortgage lending process, designed to ensure that borrowers can afford to repay their loans. To determine whether this requirement is met, lenders typically assess various aspects of the borrower's financial situation, including income, debt-to-income ratio, and credit history.

The borrower's income is a fundamental factor, as it provides the lender with an understanding of the borrower's capacity to make monthly payments. The debt-to-income ratio further helps to quantify the borrower's financial health by comparing their monthly debt obligations to their income, indicating how much of their income is allocated to servicing debt. Additionally, the borrower’s credit history reflects their past borrowing behavior and repayment reliability, which influences the lender’s assessment of risk.

In contrast, while the value of the property securing the loan is an essential consideration for the lender, it is not part of the ATR assessment. The property's value affects the loan-to-value (LTV) ratio and is important for determining the amount that can be borrowed and the overall risk associated with the property, but it does not directly contribute to evaluating the borrower’s ability to repay the loan. Therefore, this factor is not included in the ATR considerations.