(3) A creditor is presumed to have complied with this paragraph with respect to a transaction if the creditor:
(a) Verifies the consumer's repayment ability as provided in subparagraphs (1) and (2);
(b) Determines 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) Assesses 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) Notwithstanding subparagraph (3), no presumption of compliance is available for a transaction for which:
(a) The regular periodic payments for the first 7 years would cause the principal balance to increase; or
(b) The term of the loan is less than 7 years and the regular periodic payments when aggregated do not fully amortize the outstanding principal balance.