Go to page 3 of the Loan Application.
- Scroll to the Liabilities section.
- Click New to enter each liability manually. (Note: You can click the Request Credit button to request the borrower's credit report and import their liabilities, see article 5403 Requesting or Importing Credit Reports.)
- From the Edit Liability dialogue box, enter the name and address of the creditor.
- Enter the account number and select a description from the Liability Type dropdown list.
- Indicate if the debt is for a revolving account (R), an installment loan (I), or a mortgage (M), in the R/L(I)/M field.
Note: Mortgage payments are in parenthesis and not counted into the total debt because the payment is being counted elsewhere, from the schedule of real estate owned for rental properties and second homes, and from page 2 of the loan application for the subject property.
- Enter the balance, monthly payment, and number of months remaining before the debt is paid in full.
- Select the Will Be paid off (*) check box if the debt will be paid off at the close of escrow.
- Check the Resubordinated check box to indicate that the loan is a refinance of a first mortgage and will have a first lien before an existing second lien on the property.
- Check the Omitted check box to exclude the payment from the total debt.
- Click Save & New to create a new entry or Save & Close when you are finished.
- In the Alimony/Child Support field, enter a description and monthly payment if the borrower owes alimony or child support.
- In the Job Related Expense fields, enter job expenses such as union dues or uniforms.
Entering Liabilities under a different name
For a borrower who has credit under a name that is different from the name they are using on the Loan Application (a married woman had credit in her maiden name e.g.).:
Scroll to the bottom of Loan Application pg. 3.
Enter the Alternate name under which the borrower has/had credit, the creditor's name, and account number.
When the Liabilities have all been entered, the Insert, Edit, and Delete buttons can be used to add, change or remove entries. Use the Move Up and Move Dn buttons to move entries up or down in the list.