HMDA instructions indicate that we should report the annual gross income used to render the credit decision. In terms of Sole Proprietors, however, we may at times consider gross receipts or gross sales listed in Form 1040 Schedule C - Profit or Loss from Business. In these instances, what should we report as the borrower's income? Do we just rely on exactly what was used to render the decision regardless of the fact that it may include gross receipts or gross sales?

Thanks!

If you counted it as income in your credit decision, you would include it.

From a credit underwriting perspective, I'm not sure why that would ever happen. Additionally, with your statement that "we may at times" presents some fair lending issues.