Question: Your bank approved a mortgage on a residential property for the purpose of purchasing the property. The bank relied upon the income of the borrower as indicated in his tax return, but also took into consideration the income of corporations owned and controlled by the borrower. Should your bank include only the adjusted gross income as reported on the personal tax return or should you also include the income of the corporations owned and controlled by the borrower and upon which you considered when making your credit decision?
Answer: You should include the income of the corporations as well as the AGI of the borrower in the income you report in your HMDA LAR for this loan.
GeoDataVision
GeoDataVision uses GIS (Geographic Information Science) and relational database technology to help community bankers with compliance and marketing needs. GDV offers maps that depict census tract demographics, HMDA and CRA loan distribution and depository data. GDV distributes HMDA and CRA Loan Databases (CRA Benchmark Data) organized to facilitate Market Rank and Market Share Analysis and key borrower characteristics for compliance and marketing applications. GDV also provides banks CRA exam preparation and CRA self-monitoring services. Please contact Lensuzio@geodatavision.com or call 203-237-1332 or visit our Web site: www.geodatavision.com
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