Post by rebeccakruppa on Apr 12, 2016 16:59:02 GMT
In trying to establish a payment for a borrower with a deferred student loan showing UNK or $0 on the credit report, the borrower has gone on an Income Driven Repayment Plan.
Because this is a one-year payment program and the borrower is required to reapply each year, I am generally hearing we can't accept the loan payment document stating the payment amount for the coming year.
On the HUD resource center, I found the following:
How is the monthly payment determined for a student loan under an Income Based Repayment plan?
The guidance in this FAQ is effective for case numbers assigned on or after September 14, 2015.
The Mortgagee must include the monthly payment shown on the credit report, loan agreement or payment statement to calculate the Borrower’s debts.
If the credit report does not include a monthly payment for the loan, the Mortgagee must use the amount of the monthly payment shown in the loan agreement or payment statement.
If the monthly payment shown on the credit report is utilized to calculate the monthly debts, no further documentation is required.
If the credit report does not include a monthly payment for the loan, or the payment reported on the credit report is greater than the payment on the loan agreement or payment statement, the Mortgagee must obtain a copy of the loan agreement or payment statement documenting the amount of the monthly payment
If a student loan is not deferred, the debt is considered an installment loan and FHA will count the actual monthly payment for the obligation. This includes the actual monthly payment for the obligation that is being paid under an income based repayment plan, which may include an actual monthly payment of $0.
I also called the HUD resource center, and they were unable to tell me if the loan repayment document for this plan was valid or not with the one-year Income Driven Plan. The person did not seem to think using a loan agreement with the one-year payment was an issue but could not find anything specific about this.
It would seem that if the loan repayment docs say a stated payment for this particular plan, that we should be able to use it according to the language from the resource page. Please advise!
Because this is a one-year payment program and the borrower is required to reapply each year, I am generally hearing we can't accept the loan payment document stating the payment amount for the coming year.
On the HUD resource center, I found the following:
How is the monthly payment determined for a student loan under an Income Based Repayment plan?
The guidance in this FAQ is effective for case numbers assigned on or after September 14, 2015.
The Mortgagee must include the monthly payment shown on the credit report, loan agreement or payment statement to calculate the Borrower’s debts.
If the credit report does not include a monthly payment for the loan, the Mortgagee must use the amount of the monthly payment shown in the loan agreement or payment statement.
If the monthly payment shown on the credit report is utilized to calculate the monthly debts, no further documentation is required.
If the credit report does not include a monthly payment for the loan, or the payment reported on the credit report is greater than the payment on the loan agreement or payment statement, the Mortgagee must obtain a copy of the loan agreement or payment statement documenting the amount of the monthly payment
If a student loan is not deferred, the debt is considered an installment loan and FHA will count the actual monthly payment for the obligation. This includes the actual monthly payment for the obligation that is being paid under an income based repayment plan, which may include an actual monthly payment of $0.
I also called the HUD resource center, and they were unable to tell me if the loan repayment document for this plan was valid or not with the one-year Income Driven Plan. The person did not seem to think using a loan agreement with the one-year payment was an issue but could not find anything specific about this.
It would seem that if the loan repayment docs say a stated payment for this particular plan, that we should be able to use it according to the language from the resource page. Please advise!
