Sec. 8. (a) A creditor may not make a high cost home loan without regard to repayment ability. (b) If a creditor presents evidence that the creditor followed commercially reasonable practices in determining the borrower's debt to income ratio, there is a rebuttable presumption that the creditor made the high cost home loan with due regard to repayment ability. For purposes of this section, there is a rebuttable presumption that the borrower's statement of income provided to the creditor is true and complete. (c) Commercially reasonable practices include the use of: (1) the debt to income ratio: (A) listed in 38 CFR 36.4337(c)(1); and (B) defined in 38 CFR 36.4337(d); and (2) the residual income guidelines established under: (A) 38 CFR 36.4337(e); and (B) United States Department of Veterans Affairs form 26-6393.
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