no longer a joint application

Posted By: Island Dreaming

no longer a joint application - 12/12/11 09:12 PM

Haven't run into this scenario and would appreciate a little help!
Two single people apply for a joint mortgage loan. The debts of one of the applicants make the dti too high to qualify for the loan. The other applicant can qualify on his or her own.
How should this be handled? 1)Deny the original application and let the applicant that can qualify on their own know they can re-apply individually? 2)Counter-offer to the qualified applicant to change to an individual application? 3)Keep original application active and document the file as to the change from two applicants to one applicant? 4)Other suggestions?
Posted By: Working From Home

Re: no longer a joint application - 12/12/11 10:20 PM

I can narrow it down for you. You can't do #3. Since applicant #2 doesn't qualify, you owe them at least a counter or denial. However, since you had a joint applicant onthe original application, I would do #1, then it won't mess up your HMDa reporting, and when audited by examiners will be clean.
Posted By: Island Dreaming

Re: no longer a joint application - 12/13/11 02:42 PM

Thanks for the reply Issues! That's the direction I was leaning also.