Change Date

September 15, 2004, Change 4

·   This section has been changed to create subsection lettering.

·   Subsection e and k have been changed to update the E/MSS to MyPay.

·   Subsection e has been further changed to delete references to VIE.  This company no longer provides employment verifications.

·   Subsection f has been changed to remove an extra bullet in the middle of a paragraph.

a. Underwriter’s Objectives

Identify and verify income available to meet

·   the mortgage payment

·   other shelter expenses

·   debts and obligations, and

·   family living expenses.

Evaluate whether verified income is

·   stable and reliable

·   anticipated to continue during the foreseeable future, and

·   sufficient in amount.

b. Importance of Verification

Only verified income can be considered in total effective income.  

c. Income of a Spouse

Verify and treat the income of a spouse who will be contractually obligated on the loan the same as the veteran’s income.

To ensure compliance with the Equal Credit Opportunity Act (ECOA), do not ask questions about the income of an applicant’s spouse unless the

·   spouse will be contractually liable

·   applicant is relying on the spouse’s income to qualify

·   applicant is relying on alimony, child support, or separate maintenance payments from the spouse or former spouse, or

·   applicant resides in a community property state or the security is in such a state.