FMLA no income

Posted By: Cracked Egg

FMLA no income - 04/19/17 07:56 PM

We have a customer who has applied for a mortgage but is currently on Family Medical Leave, helping her elderly mother.
We have a VOE from the employer, but she could be off 90 days and is currently not receiving income.
Are we under any obligation to count her future income since she is off under FMLA. I haven't seen anything but might have missed it.
Thank you
Posted By: kw004h

Re: FMLA no income - 04/19/17 08:43 PM

I'm confused - do you have a reason to think the applicant will not be returning to work at the end of FMLA?
Posted By: Cracked Egg

Re: FMLA no income - 04/19/17 09:13 PM

Not at all. I guess a better way to ask the question, is are we allowed to count the expected income?
I don't want a situation where the customer defaults and claims we did not perform a valid ATR investigation since she is not receiving income at the time of the loan.
Posted By: rlcarey

Re: FMLA no income - 04/19/17 09:15 PM

•On October 2, 2016, the court entered a consent order in United States v. First Federal Bank of Florida (M.D. Fla.). The complaint, which was filed on September 9, 2016 by the United States Attorney’s Office for the Middle District of Florida, alleges that the bank discriminated on the basis of sex and familial status by requiring two women on maternity leave to return to work before closing on a loan, which caused them to shorten their maternity leave. The case was referred to the Division after the Department of Housing and Urban Development (HUD) received complaints, conducted an investigation, and issued a charge of discrimination.
Posted By: kw004h

Re: FMLA no income - 04/20/17 01:41 PM

Although the FHA doesn't explicitly include caregiver int the category of a "protected class" (the definition of "familial status" focuses on minor dependents), if it were me, I'd consider Randy's news story (one of many you can find while googling "discrimination" "mortgage" " FMLA") as a cautionary tale.