(1) For purposes of this paragraph, mortgage-related obligations are expected property taxes, premiums for mortgage-related insurance required by the creditor as set forth in paragraph C and similar expenses.
(2) Under this paragraph, a creditor must verify the consumer's repayment ability as follows.
(a) A creditor must verify amounts of income or assets that it relies on to determine repayment ability, including expected income or assets, by the consumer's federal Internal Revenue Service Form W-2, tax returns, payroll receipts, financial institution records or other 3rd-party documents that provide reasonably reliable evidence of the consumer's income or assets.
(b) A creditor must verify the consumer's current obligations.
(3) An evaluation of a consumer's repayment ability must include:
(a) Verification of the consumer's repayment ability as provided in subparagraphs (1) and (2);
(b) Determination of 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) Assessment of 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) This paragraph does not apply to a temporary or so-called "bridge" loan with a term of 12 months or less, such as a loan to purchase a new dwelling when the consumer plans to sell a current dwelling within 12 months.