A lender receives a loan application from a married couple where only one spouse will be the borrower. The non-borrowing spouse refuses to provide income information. Under Regulation B, what action is most appropriate?
Correct Answer
B) Process the application using only the borrowing spouse's income if sufficient for qualification
Under Regulation B, a creditor may not require the signature of a non-applicant spouse except in limited circumstances. If the applicant spouse has sufficient income to qualify independently, the lender should process the application without requiring the non-applicant spouse's financial information.
Why This Is the Correct Answer
Under Regulation B, a creditor may not require the signature of a non-applicant spouse except in limited circumstances. If the applicant spouse has sufficient income to qualify independently, the lender should process the application without requiring the non-applicant spouse's financial information.
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A borrower receives their Closing Disclosure on Monday and is scheduled to close on Thursday of the same week. On Wednesday, the lender discovers the property taxes were underestimated by $200 per month. When is the earliest the loan can close?
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A creditor uses a third-party automated underwriting system that approves a loan, but the loan officer discovers the borrower provided false employment information after closing. What is the creditor's QM safe harbor status?