A conclusive presumption of compliance applies to:

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Prepare for the Utah Mortgage PLM Exam. Study with flashcards and multiple choice questions, with each question providing hints and explanations. Gear up for test day!

Multiple Choice

A conclusive presumption of compliance applies to:

Explanation:
A conclusive presumption of compliance applies to qualified mortgages that are prime. When a loan meets the Qualified Mortgage criteria and is considered a prime loan, the lender is conclusively presumed to have complied with the ability-to-repay rule. In practice, this means the borrower cannot successfully argue that the lender failed to assess and verify the borrower's ability to repay—the law treats such loans as automatically compliant with ATR. This strong protection is not extended to subprime or other non-prime loans, which may rely on other safe harbors but do not carry the conclusive presumption.

A conclusive presumption of compliance applies to qualified mortgages that are prime. When a loan meets the Qualified Mortgage criteria and is considered a prime loan, the lender is conclusively presumed to have complied with the ability-to-repay rule. In practice, this means the borrower cannot successfully argue that the lender failed to assess and verify the borrower's ability to repay—the law treats such loans as automatically compliant with ATR. This strong protection is not extended to subprime or other non-prime loans, which may rely on other safe harbors but do not carry the conclusive presumption.

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