Getting into Non-Agency Lending? Ensure the Ability To Repay

We get it. Refinances are drying up. The rating agency DBRS, citing the Mortgage Bankers Association, expects purchase originations to increase 7.3% this year, reaching $1.167 trillion. Refinance originations, on the other hand, are expected to fall by 28.3%.1

If these projections have you looking into alternative offerings such as non-agency lending, our verifications help you meet the Ability To Repay (ATR) Rules, which require:

  • Current or reasonably expected income or assets – Credit Plus provides income verifications through a written VOE with year-to-date income. We also offer instant VOEs with income verification as a certified reseller of The Work Number®, a solution offered through Equifax Workforce Solutions*, and the largest collection of payroll records contributed directly from employers. In addition, we verify income by obtaining 4506-T/Tax Return Verifications.
  • Current employment status – Credit Plus provides a 100 percent, online solution with employment verifications through The Work Number® and also through manual verifications.
  • The monthly payment on the covered transaction – The lender will provide on the 1003.
  • The monthly payment on any simultaneous loan – The lender will provide a copy of the note.
  • The monthly payment for mortgage-related obligations – The lender will provide a copy of the note.
  • Current debt obligations, alimony, and child support – Credit Plus provides this information through Tri-Merge Credit Reports; Undisclosed Debt Verifications; and 4506-T/Tax Return Verifications.
  • The monthly debt-to-income ratio or residual income – Credit Plus provides employment and income verifications through The Work Number®; and through consistent, auditable manual verifications; 4506-T/Tax Return Verifications; and Tri-Merge Credit Reports.
  • Credit history – Credit Plus provides Tri-Merge Credit Reports.

To find out more about how Credit Plus can help you meet the ATR rules, click here.

*Equifax Workforce Solutions is a business unit of Equifax Inc., Atlanta, Georgia. Credit Plus is an authorized reseller of products and services provided through Equifax. The Work Number® is a registered trademark of TALX Corporation,  a wholly owned subsidiary of Equifax Inc.

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