I have a denial we completed that is stating, Income insufficient for amount of credit requested and Excessive obligation in relation to income as reasons for denial. It has been my understanding that these 2 should not be used together but instead as an either or situation. Does anyone have any comments to this? All help would be appreciated!!! Thanks

There is an adverse action guideline in the banker's tool section that you might like.

My advice is to use excessive obligations when the debt to income is higher than you would typically allow prior to considering the new loan amount.

We use income insufficient when the debt to income ratios are within guidelines, but when you consider the new loan, the debt to income ratios go higher than we would typically allow.

i have the guide to adverse action but i was needing the regulatory source as to where this could be found as an either or situation.

There is no regulatory guidance.