True or False: Commercial loans must also follow the ATR Rule.

The statement is false because the Ability-to-Repay (ATR) rule under the Truth in Lending Act primarily applies to residential mortgage loans and not to commercial loans. The ATR rule was designed to ensure that lenders ascertain a borrower's ability to repay a mortgage loan, thus preventing predatory lending practices in the residential sector. Commercial loans, which are typically used for business purposes, are generally exempt from these rules, allowing for more flexibility in lending practices between businesses.

This distinction is critical as it emphasizes the regulatory framework's focus on consumer protection in residential lending rather than extending those same requirements to commercial lending scenarios. Consequently, the ATR rule does not impose its requirements on commercial loan transactions, leading to the correct answer being that commercial loans do not have to follow the ATR Rule.