c. Income of a Spouse (continued)

Note:  In community property states, information concerning a spouse may be requested and considered in the same manner as for the applicant, even if the spouse will not be contractually obligated on the loan.

d. ECOA Considerations

Restrict inquiries related to the applicant’s spouse to the situations listed in the “Income of a Spouse” heading in this section.

Always inform the applicant (and spouse, if applicable) that they do not have to divulge information on the receipt of child support, alimony, or separate maintenance.  However, in order for this income to be considered in the loan analysis, it must be divulged and verified.

Income cannot be discounted because of sex, marital status, age, race, or other prohibited bases under ECOA.

Treat income from all sources equally; that is, the fact that all or part of an applicant’s income is derived from any public assistance program is not treated as a negative factor, provided the income is stable and reliable.

e. Income from Non-Military Employment

Verification:  General Requirement

Verify a minimum of 2 years employment.

If the applicant has been employed by the present employer less than 2 years

·   verify prior employment plus present employment covering a total of 2 years

·   provide an explanation of why 2 years employment could not be verified.

·   compare any different types of employment verifications obtained (such as, Verification of Employment, pay stubs, tax returns, and so on) for consistency, and

·   clarify any substantial differences in the data that would have a bearing on the qualification of the applicant.