By Rob Chrisman
Posted To: Pipeline Press
Occasionally I am asked about how the agencies handle certain types of debt. As a reminder, Fannie Mae requires that all deferred installment debt, including student loans not yet in repayment, be included in the calculation of the borrower’s debt-to-income ratio . In determining the payment for deferred student loans, Fannie Mae currently requires that the lender obtain a copy of the borrower’s payment letter or forbearance agreement or calculate the monthly payment at 2% of the balance of the student loan. Research has shown that actual monthly payments are typically lower than 2%. In addition, many student loan repayment structures now use an income-based approach in calculating changes in the payment due over time. As a result, Fannie Mae modified the monthly payment calculation from 2…(read more)
Via:: Deferred Debt Payment Calculation; Collateral Underwriter; Oil Impacting Commercial Real Estate
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