Section DFI-Bkg 46.02 - Ability to repay(1) GUIDELINES FOR ABILITY TO REPAY BASED UPON DEBT-TO-INCOME RATIO. Acceptable debt-to-income ratio tests include, but are not limited to, any of the following:(a) The debt-to-income ratio of the loan, computed pursuant to 38 CFR 36.4337(d), is 50% or less, and the customer has adequate monthly residual income, computed pursuant to 38 CFR 36.4337(e).(b) The debt-to-income ratio requirement but not the monthly residual income requirement specified under par. (a) is satisfied, and the lender fully justifies in writing that the applicant is a satisfactory credit risk when considering the compensating factors described in 38 CFR 36.4337(c) (5). (c) The monthly residual income requirement but not the debt-to-income ratio requirement specified under par. (a) is satisfied, and the lender fully justifies in writing that the applicant is a satisfactory credit risk when considering the compensating factors described in 38 CFR 36.4337(c) (5). (2) VERIFICATION OF ABILITY TO REPAY. The lender shall verify a borrower's ability to repay a covered loan by all of the following:(a) Having the borrower prepare and submit to the lender a personal income and expense statement. Note: Acceptable personal income and expense statements include a Fannie Mae uniform residential loan application, available at www.fanniemae [File Link Not Available], or a Freddie Mac uniform residential loan application, available at www.freddiemac.com.
(b) Having the borrower submit to the lender a tax return, pay stub, accounting statement or other similar document.(c) Obtaining the borrower's credit report, if available.Wis. Admin. Code Department of Financial Institutions DFI-Bkg 46.02
CR 04-089: CR Register December 2004 No. 588, eff. 2-1-05.