Underwriting standards for qualifying automobile loans.

CFR · 2024-01-01 · US · Title 12

(a) (i) Verified and documented that within 30 days of the date of origination: (A) The borrower was not currently 30 days or more past due, in whole or in part, on any debt obligation; (B) Within the previous 24 months, the borrower has not been 60 days or more past due, in whole or in part, on any debt obligation; (C) Within the previous 36 months, the borrower has not: ( ( (D) Within the previous 36 months, no one-to-four family property owned by the borrower has been the subject of any foreclosure, deed in lieu of foreclosure, or short sale; or (E) Within the previous 36 months, the borrower has not had any personal property repossessed; (ii) Determined and documented that the borrower has at least 24 months of credit history; and (iii) Determined and documented that, upon the origination of the loan, the borrower's DTI ratio is less than or equal to 36 percent. (A) For the purpose of making the determination under paragraph (a)(1)(iii) of this section, the originator must: ( ( (2) An originator will be deemed to have met the requirements of paragraph (a)(1)(i) of this section if: (i) The originator, no more than 30 days before the closing of the loan, obtains a credit report regarding the borrower from a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis (within the meaning of 15 U.S.C. 1681a(p)); (ii) Based on the information in such credit report, the borrower meets all of the requirements of paragraph (a)(1)(i) of this secti

official document · source cfr-2024 · id 12:§ 43.18