Thread Options
#1908820 - 03/26/14 05:52 PM History of ontime payments = ATR?
cheech Offline
100 Club
Joined: Jun 2010
Posts: 207
Chatsworh PA
Oh wonderful gurus of bankers online, I am looking for a specific place to find where it says that history of on time payments could be taken into consideration when determining ability to repay. I have googled and googled, I may not be searching for the right term.

Return to Top
Ability to Repay/Qualified Mortgage Rule
#1908828 - 03/26/14 06:02 PM Re: History of ontime payments = ATR? cheech
Skittles Online
10K Club
Skittles
Joined: Sep 2002
Posts: 13,823
TN
Do you mean instead of the DTI or residual income?
_________________________
My Opinions Only

Return to Top
#1908833 - 03/26/14 06:08 PM Re: History of ontime payments = ATR? cheech
cheech Offline
100 Club
Joined: Jun 2010
Posts: 207
Chatsworh PA
I am most interested in a renewal that will not fly under the ATR rules, but they have always paid us on time. They cannot prove income. I thought this was addressed somewhere that instead of foreclosing we could take this into consideration when trying to do ATR.

Return to Top
#1909011 - 03/27/14 12:52 PM Re: History of ontime payments = ATR? cheech
Carolina Blue Offline
Platinum Poster
Carolina Blue
Joined: Jul 2005
Posts: 950
Lost in a regulatory fog
I think the only place the regulation specifically addresses payment history on an exisitng loan is when you're looking to do a refinance from a non-standard to standard mortgage.

If it's not a non-standard mortgage, then you're still going to need to consider the 8 underwriting factors. Payment history on an existing loan can certainly be a mitigating factor but it will not replace the 8 ATR fators.

Return to Top
#1909015 - 03/27/14 01:02 PM Re: History of ontime payments = ATR? cheech
cheech Offline
100 Club
Joined: Jun 2010
Posts: 207
Chatsworh PA
Darn, thanks for your help.

Return to Top
#1909038 - 03/27/14 01:27 PM Re: History of ontime payments = ATR? cheech
Skittles Online
10K Club
Skittles
Joined: Sep 2002
Posts: 13,823
TN
Cheech - I believe a majority of banks that have loans up for renewal and the borrower(s) doesn't qualify will be doing modifications before the loan matures.
_________________________
My Opinions Only

Return to Top
#1909753 - 03/28/14 06:08 PM Re: History of ontime payments = ATR? cheech
cheech Offline
100 Club
Joined: Jun 2010
Posts: 207
Chatsworh PA
That was the plan but 1 slipped through the cracks and was not modified prior to the maturity. They have paid on time for three years and can only document 5,000 in income. (They must be making cash on the side or receiving help from someone)

Return to Top
#1909767 - 03/28/14 06:46 PM Re: History of ontime payments = ATR? cheech
Deena Offline
Power Poster
Deena
Joined: Nov 2000
Posts: 2,701
PA
cheech, see if this thread helps.
_________________________
Opinions expressed are mine and not necessarily those of my employer.

Return to Top