Thread Options
#2223664 - 10/11/19 09:38 PM Negative income and DTI
Jason Ellis Offline
Junior Member
Joined: Jun 2018
Posts: 35
If a self employed applicant has either negative or zero qualifying income what should be reported on the HMDA LAR as DTI? This is assuming we relied on the DTI in making the credit decision. Our system just leaves the DTI blank, which is not valid for the LAR. Should we report the maximum DTI 999.99%?

Return to Top
HMDA

   
HMDA Academy
#2223680 - 10/14/19 06:19 PM Re: Negative income and DTI Jason Ellis
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,948
Galveston, TX
(2-80) Paragraph 4(a)(23)—Debt-to-Income Ratio.
Enter, as a percentage, the ratio of the applicant’s or borrower’s total monthly debt to the total monthly income relied on in making the credit decision. Use decimal places only if the ratio relied upon uses decimal places.The HMDA Platform can accept up to 15 decimal places and can accept negative numbers for Debt-to-Income Ratio.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2223685 - 10/14/19 08:37 PM Re: Negative income and DTI Jason Ellis
Jason Ellis Offline
Junior Member
Joined: Jun 2018
Posts: 35
Thank you!

Return to Top
#2223726 - 10/15/19 05:38 PM Re: Negative income and DTI Jason Ellis
Inherent_Risk Offline
Gold Star
Joined: Jan 2017
Posts: 358
In general, if you don't know what the DTI is, then you probably didn't rely on it.

Return to Top