Consider a borrower earning over $150,000 annually, with strong credit, substantial savings and a consistent record of making payments on time. On paper, that is exactly what underwriting standards were built to recognize. But as income sources diversify, more of these borrowers no longer fit the conventional metrics lenders rely on. It is time for underwriting standards to catch up.
Now imagine that same person being told they do not qualify for the mortgage they want. Sadly, this is not uncommon. A general contractor may have significant business deductions that reduce taxable income. A software developer might receive much of their pay in restricted stock. A business owner may report income through a K-1 that doesn’t align with standard ...
