Lesson 06: Loan Officer Training on Credit Worthiness
Lesson Overview
- How to use the mortgage application and credit report to determine the borrower's willingness and ability to repay the debt
- Understanding the different types of obligations a borrower may have and how to verify them
Lesson Excerpt
Auto Lease
Use the actual payment. Payment must be included even if there are less than 10 remaining payments (most lending institutions will assume that the borrower will obtain a new lease on the expiration of their current lease.)
NOTE: Auto allowance reimbursement by a company can be used to offset the correlating lease or installment debt payment. Verbally verify that the obligation is a lien against the automobile in question. The auto allowance can then be verified by either a VOE or pay-stub.
