The ATR rule does not apply to which of the following?

The correct choice is that the ATR (Ability to Repay) rule does not apply to all the listed options: HELOCs, timeshares, and temporary loans.

The ATR rule, which is a regulatory framework established by the Consumer Financial Protection Bureau (CFPB), is designed to ensure that borrowers have the ability to repay their mortgage loans. However, specific types of loans are exempt from this rule.

HELOCs (Home Equity Lines of Credit) are typically revolving lines of credit secured by a borrower's equity in their home and are not subject to the same underwriting requirements as traditional mortgage loans under the ATR framework.

Timeshares are generally not considered traditional mortgage loans but rather an interest in a property for a designated time frame. They often have distinct financing structures that do not fall under the ATR rule.

Temporary loans, or those that are short-term in nature (like bridge loans), are also not included under the ATR requirements due to their brief duration and the specific characteristics that differentiate them from standard mortgage loans.

These exceptions are crucial to understand, as they indicate that not every type of loan is evaluated in the same manner under the regulatory requirements aimed at protecting consumers and ensuring responsible lending practices. Thus, all the options listed do