Chapter 11- Ratio Analysis
11.2 B. The Total Debt Ratio:
Revolving accounts: “with no outstanding balance” are not required to be closed.
Mortgages: Rental Property - Eliminated language regarding omission of mortgage
debt. Guidance for entry of rental income in GUS is provided in the GUS Lender
User Guide under 4.1.4.1.1, Retained Investment Properties.
Added: Debt management plans:
o Include the monthly payment amount due from the counseling plan.
o Refer to Chapter 10 for guidance on credit exception and documentation
requirements.
Student Loans: Removed the phrase “the greater of” from Non-Fixed payment
loans and added guidance regarding “when the payment is above zero” and “when
the payment is zero”.
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11.3 DEBT RATIO WAIVERS AND COMPENSATING FACTORS
A. Purchase Transactions: Debt ratio waivers
GUS Refer, Refer with Caution, and manually underwritten loans without GUS
assistance:
o Added: “The lender must document compensating factors to support a
debt ratio waiver.”
o Added: “all” of the following conditions are met to the first paragraph.
Debt Ratio Waiver Request and Agency Approval:
o Added: “The issuance of the Conditional Commitment for a Loan Note
Guarantee represents Agency approval of the ratio waiver.”
B. Refinance Transactions: Debt ratio waivers
Added a bullet: GUS files that receive a GUS recommendation of Refer or Refer
with Caution are not supported by GUS, require debt ratio waivers, and supporting
documentation must be submitted to the Agency.
Added: “The issuance of the Conditional Commitment for a Loan Note Guarantee
represents Agency approval of the ratio waiver”.
11.7 OBLIGATIONS NOT INCLUDED IN DEBT-TO-INCOME RATIOS
Added: "unless a payment plan is in place" to the second bullet concerning
Federal, state, and local taxes.
