Deck 4

Question 1

At a minimum, creditors generally must consider which eight underwriting factors to determine a borrower’s ability to repay?

Answer 1

(1) current or reasonably expected income or assets; (2) current
employment status; (3) the monthly payment on the covered transaction; (4) the monthly
payment on any simultaneous loan; (5) the monthly payment for mortgage-related obligations;
(6) current debt obligations, alimony, and child support; (7) the monthly debt-to-income ratio or
residual income; and (8) credit history