Their residence is being used as collateral on a business loan?
We are counting both of their incomes and their debts,
Community property doesn't mean that you get to use the non-borrowing spouse's income in your credit analysis.
You can use the husband's or the business' but not the wife's.
She's not a borrower.
As I said above, she's just signing to relinquish her rights in the event of foreclosure. That means if you foreclose on the note signed by her husband, she can't stop you from taking the property.