Does “Unable to Verify Income” work in this scenario? Borrower applying for a HELOC. Primary income is from her investment account and small amount from Soc Sec income. If the borrower continues to draw the same amount each year for living expenses, the investment account will be depleted in 3 years. Borrower indicates she has no other future plans for income. So, we are unable to verify an income source past the 3 years and will decline the loan.

Sounds reasonable to me. Sounds like they need to talk to a financial adviser.

"Unable to verify income" doesn't say enough, IMHO, when your real reason for denying the loan is probably more like "Insufficient income for term of loan."

You were, in fact, able to verify income. The problem is that there isn't going to be enough of it.

Good point - thank you!