HAR §15-165-14. Eligibility and creditworthiness

(a) The mortgage lender shall be responsible for determining whether a loan applicant meets the requirements to be an eligible borrower and for evaluating the loan applicant•s creditworthiness (i.e., the willingness and financial ability to repay an eligible loan) pursuant to the guidelines set forth in the procedural guide. The mortgage lender•s determination must be based upon a thorough evaluation of all available and pertinent information. The corporation will rely upon the mortgage lender•s determination that a person is an eligible borrower and evaluation of the eligible borrower•s creditworthiness. (b) In considering whether a loan applicant·is within .the income limits of a housing loan program, 165-9 2237 ..... I §15-165-14 which has been approved and authorized by the board, in order to qualify as an eligible borrower, the mortgage lender must review and consider the loan applicant's federal income tax return for the year most recently completed. If, after timely, diligent efforts, the loan applicant is not able to provide the mortgage lender with a federal income tax return, the mortgage lender may consider the loan applicant's State income tax return for the most recent year completed. (c) If neither the loan applicant's federal income tax return nor State income tax return are available, the mortgage lender may consider other information which the mortgage lender would consider in verifying a loan applicant•s income under prudent mortgage lending practices. Any income limits which the board shall establish and impose in order for a person or family to qualify as an "eligible borrowerh under any home loan ·program must be strictly observed by the mortgage lender. (d) Credit underwriting for each eligible loan will be done on a case-by-case basis and must follow sound general principles in credit underwriting with due consideration being given to the loan applicant's: (1) Monthly housing expense to income ratio; (2) Monthly debt payment-to-income ratio; (3) Stable monthly income; (4) Adjusted gross income; (5) Credit reputation; and (6) Credit.report; (e) The mortgage lender may consider other lawful factors generally considered by prudent mortgage lenders in evaluating a lRAJJ,..c:JPPl}~RRt's creditworthiness. [Eff UL,I ,~ I~~~ ] (Auth: HRS §201G-4, 201G-243) (Imp: HRS §201G-244}