Ill. Admin. Code tit. 38, § 1050.1185 - Verification of Ability to Pay Loan
The lender shall verify the borrower's ability to repay the loan in the case of high risk home loans. The verification shall require, at a minimum, the following:
a) The
borrower prepares and submits to the lender a personal income and expense
statement in a form prescribed by the Director who may permit the use of other
forms such as the URLA (Fannie Mae Form 1003 (10/92), available from Fannie
Mae, 3900 Wisconsin Avenue, NW, Washington, DC 20016-2892 and Freddie Mac Form
85 (10/92), available from Freddie Mac at 1101 Pennsylvania Avenue, NW, Suite
950, PO Box 37347, Washington, DC 20077-0001, no subsequent amendments or
editions) and Transmittal Summary (Fannie Mae Form 1077 (3/97), available from
Fannie Mae, 3900 Wisconsin Avenue, NW, Washington, DC 20016-2892 and Freddie
Mac Form 1008 (3/97), available from Freddie Mac at 1101 Pennsylvania Avenue,
NW, Suite 950, PO Box 37347, Washington, DC 20077-0001, no subsequent
amendments or editions).
b) Income
is verified by means of tax returns, pay stubs, accounting statements or other
prudent means.
c) A credit report
is obtained regarding the borrower.
Notes
Amended at 29 Ill. Reg. 14808, effective September 26, 2005
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