Skip to content
BOL Conferences
Forums · Active Threads · Forum Rules · Mark All Read · Log In
BankersOnline.com Forums Banker Forums Lending Compliance Debt Service
Thread Options
#1390117 - 05/13/10 12:10 PM Debt Service
80's Lady Offline
Gold Star
Joined: Apr 2007
Posts: 295
Just curious how other banks are calculating their debt service on consumer loans (not just consumer real estate). If your max ratio per your loan policy is, say 38%, do you use PITI when rolling in the applicant's mortgage payment to the calculation, or just P&I? Thanks in advance for your input.
_________________________
I use to think I was a smart cookie before I started working in Compliance. Now, I have mastered the art of the blank stare!

Return to Top
Lending Compliance
#1390157 - 05/13/10 01:09 PM Re: Debt Service 80's Lady
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,530
Bloomington, IN
We include PITI in the DTI. If their monthly income can't support their taxes and insurance then you are eventually going to be paying them and then you most likely will end up with a loan the borrower can't afford.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1390178 - 05/13/10 01:22 PM Re: Debt Service Dan Persfull
80's Lady Offline
Gold Star
Joined: Apr 2007
Posts: 295
I am in total agreement with you Dan. Just to clarify, if you were doing an auto loan for example, would you also use the PITI on their mortgages in calculating their ratios?
_________________________
I use to think I was a smart cookie before I started working in Compliance. Now, I have mastered the art of the blank stare!

Return to Top
#1390243 - 05/13/10 02:12 PM Re: Debt Service 80's Lady
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,530
Bloomington, IN
Yes.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top

Moderator:  Andy_Z