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Verify Borrowers Acct on Refinanced HPML?

Answered by: 
Randy Carey

Question: 
On a refinanced HPML, is it necessary to verify the borrowers' bank accounts (we know it's necessary on a purchase transaction for their down payment)?
Answer: 

If current account balances are a factor in determining their ability to re-pay the loan, then the answer would be yes. It would be situation specific. Someone might have a lower monthly income, but have $1 million in liquid assets. Ability to repay is not always limited to debt-to-income ratios.

First published on BankersOnline.com 11/5/12

First published on 11/05/2012

Filed under: 
Lending
Filed under lending as: 
HPML

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