A borrower files joint tax returns with their spouse but is applying for the mortgage individually. The borrower's separate income shown on supporting documents differs from what can be determined from the joint return. The MLO should:
Correct Answer
A) Use only the income attributable to the applicant borrower
When married borrowers file jointly but only one spouse is applying for the mortgage, only the income attributable to the applicant can be used for qualification. This requires documentation to separate the applicant's income from the spouse's income, such as individual W-2s or business records.
Why This Is the Correct Answer
When married borrowers file jointly but only one spouse is applying for the mortgage, only the income attributable to the applicant can be used for qualification. This requires documentation to separate the applicant's income from the spouse's income, such as individual W-2s or business records.
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An MLO receives an appraisal report that shows the property value is $10,000 below the contract price. The borrower asks the MLO to request a 'second look' from the appraiser. What is the MLO's appropriate response?
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