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#2230702 - 02/11/20 04:45 PM Disability pay and unsecured loan
M&M Offline
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Joined: Nov 2003
Posts: 527
Midwest
I'm aware of all the guidance out around disability pay (SSI and SSDI), the FHA and mortgage lending. We have a customer who is on disability, paid through his work (not SSI or SSDI), who has applied for an unsecured loan. He cannot afford the loan while on disability, but he may be able to afford it when he returns to work in 2-3 months. Can we deny this because he cannot repay the loan right now? Or do we need to consider his income once he returns to work, even though he won't be able to repay it over the next few months? TIA!

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Fair Lending
#2230703 - 02/11/20 04:54 PM Re: Disability pay and unsecured loan M&M
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 76,928
Galveston, TX
You cannot discount the current disability income. But you don't have to act like that is not their current income.
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#2230730 - 02/11/20 07:00 PM Re: Disability pay and unsecured loan M&M
M&M Offline
Platinum Poster
Joined: Nov 2003
Posts: 527
Midwest
Not sure what you mean by "cannot discount the current disability income"? We are including it in our DTI calculation- it just isn't enough to pay the new loan while he is out on disability.

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#2230737 - 02/11/20 07:29 PM Re: Disability pay and unsecured loan M&M
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 76,928
Galveston, TX
It means that you cannot "not count it" or discount it in some manner. The disability pay issues you previously mentioned was the fact that they did not accept disability pay at all for qualification purposes.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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