What are some examples of how the borrowers ability to repay might be improved?
The following are some examples (this list is not all-inclusive): • A lower interest rate that results in a lower monthly payment. • Replacing a higher-risk loan instrument with a more stable one, such as going from an ARM to an FRM • A change in term (which may result in an increased payment) that does not compromise the borrower’s ability to repay the loan.
Related Questions
- When the borrower has a charge-off, which exceeds $1,000, say $3,000, does this really need to be satisfied if its obvious that it will not affect his ability to pay his mortgage payment?
- What is the ability of rural and agricultural finance clients to repay loans?
- What criteria is used to determine an applicants ability to repay a loan?
