Tax Exempt Income

Posted By: JUST CALL ME CRA

Tax Exempt Income - 08/16/13 03:39 PM

If a borrower has tax exempt income, and the financial institution grosses up the income by 1.25 to calculate Debt to Income, which is reported to HMDA, the grossed up amount or the actual amount? The reg indicates that you use the income that is used in making the decision. Not sure how to intepret that in these cases.
Posted By: James M. Moore

Re: Tax Exempt Income - 08/19/13 04:11 PM

You are supposed to use the gross annual income. Use the number used in the DTI calculation.