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Amend the amendment on page 2 in paragraph A in subparagraph (2) by inserting after division (b) the following:
‘
 
(3) A creditor is presumed to have complied with this paragraph with respect to a transaction if the creditor:
 
(a) Verifies the consumer's repayment ability as provided in subparagraphs (1) and (2);
 
(b) Determines the consumer's repayment ability using the largest payment of principal and interest scheduled in the first 7 years following consummation and taking into account current obligations and mortgage-related obligations; and
 
(c) Assesses the consumer's repayment ability taking into account at least one of the following:
 
(i) The ratio of total debt obligations to income; and
 
(ii) The income the consumer will have after paying debt obligations.
’
 
(4) Notwithstanding subparagraph (3), no presumption of compliance is available for a transaction for which:
 
(a) The regular periodic payments for the first 7 years would cause the principal balance to increase; or
 
(b) The term of the loan is less than 7 years and the regular periodic payments when aggregated do not fully amortize the outstanding principal balance.
Amend the amendment on page 2 in paragraph A in subparagraph (3) in the first line (page 2, line 26 in amendment) by striking out the following: "(3)" and inserting the following: '(5)'
 
SUMMARY
This amendment provides a presumption of compliance with laws that require a creditor to take into account a consumer's repayment ability before extending a higher-priced mortgage to a consumer if a creditor takes certain steps to evaluate a consumer's repayment ability.