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During a training quiz scenario, the loan team encounters an Income Calculation issue. Which response should resolve the issue before the file moves forward?

Correct Answer

C) Analyze stable and continuing income before approval

Income analysis verifies stability, source, continuance, and calculation before ATR reliance. The best answer is "Analyze stable and continuing income before approval".

Answer Options
A
Use bonus income without verifying a history or likelihood of continuance.
B
Treat temporary overtime as stable income without support in the file.
C
Analyze stable and continuing income before approval
D
Exclude a verified loss from qualifying income because the borrower prefers the higher figure.

Why This Is the Correct Answer

Income analysis verifies stability, source, continuance, and calculation before ATR reliance. The best answer is "Analyze stable and continuing income before approval".

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