a. Verification (continued)

Credit reports and verifications must be no more than 120 days old (180 days for new construction).

·   For automatically closed loans, this means the date of the credit report or verification is within 120 days of the date the note is signed (180 days for new construction).

·   For prior approval loans, this means the date of the credit report or verification is within 120 days of the date the application is received by VA (180 days for new construction).

ECOA prohibits requests for, or consideration of, credit information on a spouse who will not be contractually obligated on the loan except

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

·   in community property states.

-If the property is located in a community property state, VA requires consideration of the spouse’s credit information (whether or not the spouse will be personally liable on the note and whether or not the applicant and spouse choose to have the spouse’s income considered).

b. Verification of Alimony and Child Support Obligations

The payment amount on any alimony and/or child support obligation of the applicant must be verified.

Do not request documentation of an applicant’s divorce unless it is necessary to verify the amount of any alimony or child support liability indicated by the applicant.  If, however, in the routine course of processing the loan, the lender encounters direct evidence (such as, in the credit report) that a child support or alimony obligation exists, make any inquiries necessary to resolve discrepancies and obtain the appropriate verification.