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#1853710 - 09/19/13 02:19 PM HMDA/CRA Gross Income - What to Use?
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,065
In the mountains
HMDA: Enter the gross annual income that your institution relied on in making the credit decision.

CRA: The gross annual income of the borrower that the bank considered in making its credit decision.

So, when a borrower has a schedule C, schedule E, and perhaps income from a schedule K-1...would the total gross income received from these be considered the gross annual income we relied on? The figure we use for underwriting the loan is sometimes nowhere near this gross figure. It seems for underwriting we would truly be using the net income of these schedules to make a credit decision since ultimately it is what is left over that the customer uses to pay their personal debts.

What should we be using?

Thanks in advance for your help!
Always learning something new...

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HMDA Academy
#1853732 - 09/19/13 02:55 PM Re: HMDA/CRA Gross Income - What to Use? Likes to Comply
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,292
For CRA it is revenue/sales NOT income. How much did the business take in from customers.
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy

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#1855041 - 09/24/13 07:04 PM Re: HMDA/CRA Gross Income - What to Use? Likes to Comply
Phoenix Offline
Platinum Poster
Joined: May 2003
Posts: 832
so just to clarify - if a business sold various assets for some sort of gain - that's NOT part of the revenue for CRA purposes?

thanks -
From the end spring new beginnings.
Pliny the Elder

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