---
title: "Build the ability-to-repay file for a dwelling-secured consumer loan"
url: "https://ailawframework.com/practice/banking-and-finance/build-the-responsible-lending-assessment-file-for-a-consumer-loan/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A3-J20261018-2-US"
practice_area: "Banking & Finance (Lending, Securities, Project Finance)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Build the ability-to-repay file for a dwelling-secured consumer loan

> List the income, employment, debts, mortgage-related obligations and third-party records on the file against the repayment factors. Do not mark the loan a qualified mortgage.

Canonical page: https://ailawframework.com/practice/banking-and-finance/build-the-responsible-lending-assessment-file-for-a-consumer-loan/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Banking & Finance (Lending, Securities, Project Finance)](https://ailawframework.com/practice/banking-and-finance.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | List the income, employment, debts, mortgage-related obligations and third-party records on the file against the repayment factors. Do not mark the loan a qualified mortgage. |
| What the lawyer must review | For a covered transaction, 12 C.F.R. § 1026.43(c)(1) says the creditor must make a reasonable and good-faith determination, at or before consummation, that the consumer will have a reasonable ability to repay the loan according to its terms. Paragraph (c)(2) requires consideration of current or reasonably expected income or assets other than the value of the dwelling, employment status if employment income is used, the monthly payment on the loan, simultaneous loans the creditor knows or has reason to know about, mortgage-related obligations, current debts, alimony and child support, monthly debt-to-income ratio or residual income, and credit history. Verification uses reasonably reliable third-party records. The general payment rule uses the fully indexed rate or any introductory rate, whichever is greater, and monthly, fully amortising payments that are substantially equal. Under § 1026.43(e)(1)(i), there is a safe harbour if the loan is a qualified mortgage defined in (e)(2), (e)(4), (e)(5), (e)(6), or (f) and is not a higher-priced covered transaction, or if it is a qualified mortgage defined in (e)(7) whether or not it is higher-priced. Under (e)(1)(ii), a qualified mortgage defined in (e)(2), (e)(4), (e)(5), (e)(6), or (f) that is a higher-priced covered transaction is presumed to comply, and that presumption can be rebutted. You decide which paragraph applies. The tool does not. |
| Written for | United States |
| Applies to | [Build the responsible lending assessment file for a consumer loan](https://ailawframework.com/practice/banking-and-finance/build-the-responsible-lending-assessment-file-for-a-consumer-loan.md) |

## Checking plan

- What the AI does: List the income, employment, debts, mortgage-related obligations and third-party records on the file against the repayment factors. Do not mark the loan a qualified mortgage.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Do not use the general payment rule for a balloon, interest-only or negative-amortisation loan. Open § 1026.43(c)(5)(ii).
- Open paragraphs (d) and (f) before you treat a loan as outside paragraph (c). Do not state a points-and-fees cap.

## Sources

- [12 C.F.R. § 1026.43, Minimum standards for transactions secured by a dwelling](https://www.ecfr.gov/current/title-12/chapter-X/part-1026/section-1026.43) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)
- [ABA Model Rule 1.1, Competence](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_1_competence/) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Responsible lending assessment file](https://ailawframework.com/precedents/banking-and-finance/responsible-lending-assessment-file.md) | Form | Yellow | File index for the inquiries and the unsuitability assessment a licensee must make before entering or increasing a credit contract. The licensee makes the assessment. |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*