f. Other Analysis Errors

Deficiencies included

·   failure to consider

-   changes in marital status or household size after application and prior to closing, and

-   pay statements showing deductions to creditors that are not shown on the application, credit reports, or deposit verifications

·   approving a loan solely on the basis of an emotional appeal from the applicant or spouse, the sales agent, seller, or other interested party.  A decision or an inclination to reject a loan application should not be changed unless there is new and compelling information available to justify approving the loan.

·   approving high debt-to-income ratio loans with few or no valid compensating factors

·   using gift letters to offset past due obligations, pay off debts, and so on, without consideration of the credit risk implications of the past due obligations  

·   ignoring debts, judgments, bankruptcies, alimony or child support obligations because they don’t appear on the credit report, and

·   failure to reconcile a large increase in shelter expense with an undemonstrated ability to accumulate cash assets.