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#2269150 - 04/14/22 10:36 PM ATR
Nicole Offline
100 Club
Joined: Nov 2018
Posts: 144
We have an application with a mother and son applying to purchase a primary residence. Son currently has a job that he has been with for 4 months and on application indicates line of work for 4 years. Son provided paystubs and tax returns for the past two years. Income on tax returns is significantly lower, granted he has a new job with more pay and therefore does not match last years returns. For ATR rules is the new job income ok to use for approval? Reasoning behind my hesitation is the income is 5X that amount he used to make and has only been with employer for 2 months.

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Ability to Repay/Qualified Mortgage Rule
#2269151 - 04/15/22 11:28 AM Re: ATR Nicole
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,633
Galveston, TX
For ATR rules is the new job income ok to use for approval?

What ATR rules? You make your own rules now, since Appendix Q has been deleted. How to handle this should already be written into your credit underwriting policies and if it is not, it should be.

While just switching employers usually would not be a negative as far as length of continued employment, having some seasoning requirements for a new level of pay would not be unusual, unless they were working under an employment contract.
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