Change Date

September 15, 2004, Change 4

This section has been changed to create subsection lettering.

a. Verification

Significant debts and obligations of the applicant must be verified and rated.

Obtain a credit report. 

Reference:  See section 7 of this chapter for details on the type of credit report required.

For obligations not included on the credit report which are revealed on the application or through other means, the lender must obtain a verification of deposit showing the obligation or other written verification directly from the creditor.  The lender must also separately verify accounts listed as “will rate by mail only” or “need written authorization.”

When a pay stub or leave-and-earnings statement indicates an allotment, the lender must investigate the nature of the allotment to determine whether the allotment is related to a debt.

For obligations that have not been rated on the credit report or elsewhere, obtain the verification and rating directly from the creditor.  Include a written explanation for any obligation that is not rated.

Resolve all discrepancies.  If the credit report or deposit verification reveals significant debts or obligations which were not divulged by the applicant

·   obtain clarification as to the status of such debts from the applicant, then

·   verify any remaining discrepancies with the creditor.