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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

Posted by Illinois Mortgage Lender Greg Zaccagni on 05/30/2008 08:26 AM

Comments (2)

This post has been included in Illinois Information
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2 Comments on Death of Stated Income Loans for Illinois

Here is an example of one lenders response to IL SB 1167. If you can find something to the contrary please let me know.

06/08/2008 09:09 AM

by Illinois Mortgage Lender Greg Zaccagni (www.MortgageAdvisor.info)

Hello Juan:

the link to your blog doesn't appear to be working.

06/10/2008 06:38 PM

by Illinois Mortgage Lender Greg Zaccagni (www.MortgageAdvisor.info)

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