p. Alimony, Child Support, and Maintenance Payments

See “ECOA Considerations” in this section.

Verify the income if the applicant wants it to be considered.  The payments must be likely to continue in order to include them in effective income.

Factors used to determine whether the payments will continue include, but are not limited to

·   whether the payments are received pursuant to a written agreement or court decree

·   the length of time the payments have been received

·   the regularity of receipt, and

·   the availability of procedures to compel payment.

q. Automobile or Similar Allowances

Generally, automobile allowances are paid to cover specific expenses related to an applicant’s employment, and it is appropriate to use such income to offset a corresponding car payment. 

However, in some instances, such an allowance may exceed the car payment.  With proper documentation, income from a car allowance which exceeds the car payment can be counted as effective income.  Likewise, any other similar type of allowance which exceeds the specific expenses involved may be added to gross income to the extent it is documented to exceed the actual expense.