Sec. 20. Verification of ability to repay loan.

196 words·~1 min read·/il/chapter-815/act-137/20

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Sec. 20. Verification of ability to repay loan. The lender shall verify the borrower's ability to repay the loan in the case of a high risk home loan. The verification shall require, at a minimum, the following:

(1)That the borrower prepare and submit to the lender a personal income and expense

statement in a form prescribed by the Commissioner or 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, D.C. 20016-2892, and Freddie Mac Form 85 (10/92), available from Freddie Mac at 1101 Pennsylvania Avenue, NW, Suite 950, P.O. Box 37347, Washington, D.C. 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, D.C. 20016-2892, and Freddie Mac Form 1008 (3/97), available from Freddie Mac at 1101 Pennsylvania Avenue, NW, Suite 950, P.O.

Box 37347, Washington, D.C. 20077-0001, no subsequent amendments or editions).

(2)That the borrower's income is verified by means of tax returns, pay stubs,

accounting statements, or other prudent means.

(3)That a credit report is obtained regarding the borrower.