Which of the following is exempt from some parts of the ATR rule?

The reverse mortgage is exempt from some parts of the Ability to Repay (ATR) rule because it is considered a unique financial product designed primarily for older homeowners. The ATR rule requires lenders to assess a borrower's ability to repay a mortgage before issuing a loan. However, due to the structure and purpose of reverse mortgages, which allow seniors to convert part of their home equity into cash without the need for monthly repayments until they move out or pass away, certain ATR requirements are not applicable.

Seniors often rely on these loans to supplement their income during retirement, and the lack of monthly payments alleviates the traditional income assessment that applies to other loan products. This exemption is crucial to encourage the availability of reverse mortgages for older homeowners needing financial flexibility, without imposing stringent repayment criteria that may not be relevant to this demographic.