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#2178340 - 05/16/18 12:11 PM ATR
Comply101 Offline
New Poster

Registered: 11/07/13
Posts: 7
We have a consumer applying for a mortgage loan. This consumer is a guarantor on a separate commercial debt. Should we include that debt into our DTI calculations?

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Ability to Repay/Qualified Mortgage Rule
#2178346 - 05/16/18 12:26 PM Re: ATR [Re: Comply101]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 67912
Loc: Galveston, TX
5. Contingent Liability on Cosigned Obligations.

a. Contingent liability applies, and the debt must be included in the underwriting analysis, if an individual applying for a mortgage is a cosigner/co-obligor on:

i. A car loan;

ii. A student loan;

iii. A mortgage; or

iv. Any other obligation.

b. If the creditor obtains documented proof that the primary obligor has been making regular payments during the previous 12 months, and does not have a history of delinquent payments on the loan during that time, the payment does not have to be included in the consumer's monthly obligations.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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