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(c) Loan amortization. If a direct lender amortizes a loan over a period of time that is longer than the term to maturity under §614.4000(a), §614.4010(a), §614.4030(a), §614.41040(a), or §614.4050(a)(1) or (2), it must establish a loan amortization schedule that is:

(1) Consistent with its loan underwriting standards adopted pursuant to §614.4150; and

(2) Appropriate to the type and purpose of the loan, expected useful life of the asset being financed, and the repayment capacity of the borrower.

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