Death of Stated Income Loans for Illinois

Effective June 1, 2008 the following provisions of IL Senate Bill SB 1167 become effective.

Verification of Borrowers ability to pay when calculating Debt Ratios

Adjustable rate loans (ARM's) payments must be calculated using the fully indexed rate calculated with the index rate + applicable margin.

Borrower's income & assets must be verified via tax returns, payroll receipts & bank records.  Stated income will no longer be acceptable including FHA streamlines & VA IRRRL's.

Even the receipt of verbal income verification from any automated underwriting system must be disregarded and income must still be verified.

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www.MortgageAdvisor.info & www.GregZaccagni.com