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#2232827 - 03/11/20 09:11 PM Short Term Disability
CometMan Offline
Joined: Mar 2011
Posts: 81
I have a general question regarding ATR and whether Short-Term Disability can be used for income verification. I have an applicant that held a job for 27 years and had a procedure in which he will be on short-term disability for more than 6 months. His plan is to go back to his previous job but I suppose there is a very real possibility he could not. I understand Long Term Disability can be used for income verification but I wondered what everyone's practice was with short-term. My thought is that I cannot use it since it has an expiration period and I cannot use his previous income because he is no longer earning it at this point. Does this make sense?

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Ability to Repay/Qualified Mortgage Rule
#2233283 - 03/19/20 12:58 PM Re: Short Term Disability CometMan
InFairness, CRCM Offline
Platinum Poster
InFairness, CRCM
Joined: Nov 2010
Posts: 651
I would look at the consent orders related to maternity leave discrimination and disability discrimination very carefully. Some of those hinged on assumptions that the applicant would not return to work after the short-term disability. I've linked a couple below.

Citizens Bank conciliation agreement

Waterstone Mortgage conciliation agreement

Primary Mortgage conciliation agreement
Opinions are strictly my own, and have nothing to do with my employer.

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