contingent liabilities

Fannie, FHA & USDA– Divorced – Contingent Liabilities: Is there a waiting period for not counting a liability that was assigned to an ex-spouse by court order? [MC Divorced Borrower Chart]

Answer – Fannie Mae Says: Neither Fannie or Freddie require a minimum period of time as long as the debt has been assigned and the lender documents via appropriate pages from divorce decree. Reference:  Fannie Mae B3-6-05, Monthly Debt Obligations (01/30/2018) Court-Ordered Assignment of Debt When a borrower has outstanding debt that was assigned to [...]

2018-10-25T08:25:57-05:00October 25th, 2018|

Fannie Mae – FHA – Co-Signed Car Loan: If a borrower co-signed a loan for someone and we have proof that this person made the payments, can we exclude the debt?

Answer: See text from Fannie Mae selling guide below.  As long as the payments have been made on time and you have 12 consecutive months’ worth, you should be okay. Reference:B3-6-05, Monthly Debt Obligations (01/30/2018) Debts Paid by Others Certain debts can be excluded from the borrower’s recurring monthly obligations and the DTI ratio: When [...]

2018-06-01T13:01:57-05:00February 22nd, 2018|