Bank statements and "non-bwr credit authorization forms" from TENANTS?

**cageycruz** · 06-14-2012, 06:01 PM

I have a house that I live in and rent out some of the bedrooms to college students. There is also a second unit on the property that I rent out.

I'm applying for a loan modification from Bank of America. They asked for the usual documentation from me and copies of rental agreements and canceled checks showing payment of rent from my housemates. I provided all that.

Now they also want 2 months bank statements of my tenants and boarders! And something called a "non-bwr credit authorization form" from each of them.

Is this legit? How as a landlord can I demand my tenants and boarder turn over copies of their bank statements?

And what the heck is a "non-bwr credit authorization form" and where do I get them?

**Evan Bedard** · 06-14-2012, 06:56 PM

Now they also want 2 months bank statements of my tenants and boarders! And something called a "non-bwr credit authorization form" from each of them.

Is this legit? How as a landlord can I demand my tenants and boarder turn over copies of their bank statements?

This should absolutely NOT be required from your tenants. There is no reason why they need copies of their bank statements or a credit authorization form (permission to run a credit check) when they are not co-borrowers on the mortgage. If you are renting out space in your home then cancelled checks and rental agreements should be suffice and many people do this when applying for a modification. Here try contacting the executive team and let them know you already have provided this information and there is NO reason they need to see their personal bank accounts and credit reports.

BofA executive team
1-704-386-5687

**Cat Damiano** · 06-15-2012, 09:40 AM

cageycruz,

If they are requesting this information from the boarders that are living with you in the house, then they are most likely treating that situation as they are not tenants, but in fact non borrowers contributing to the household income hence the non borrower credit authorization form and bank statements being asked for. Due to the fact that the property is your primary residence and not technically classified as an investment or rental property, they may not be looking at their income in that way but rather just as household income contributors, in which case, according to the guidelines they would have to verify their income and occupancy status in the same manner they would for the borrower.

According to the guidelines;

Non-Borrower Household Income:

A non-borrower is someone who is not on the original note (and may or may not be on the
original security instrument), but whose income has been relied upon to support the mortgage
payment. Non-borrower household income that may be considered for HAMP qualification must
come from someone who resides in the residence. Examples include a non-borrower spouse,
parent, child or a non-relative, but in each case, a person who shares in the occupancy of the
home and provides some support for the household expenses.
Servicers should include non-borrower household income in monthly gross income if it is
voluntarily provided by the borrower and if, in the servicer’s business judgment, that the income
reasonably can continue to be relied upon to support the mortgage payment. Non-borrower
household income included in the monthly gross income must be documented and verified by the
servicer using the same standards for verifying a borrower’s income. If income is being used for
a non-borrower, the servicer should use only the income that the non-borrower will contribute to
the mortgage. The servicer must verify the occupancy of a non-borrower in the same manner it
verifies the occupancy of a borrower after obtaining written authorization from
the non-borrower to obtain the non-borrower’s credit report.

**NJHomeowner** · 06-15-2012, 10:25 AM

Very curious here as I am considering doing the same thing using my son...my dilemma is he makes a lot of money and that would throw the whole Hamp Mod out the window. Do they consider what he states he contributes or his whole income??

Originally Posted by Cat Damiano

cageycruz,

If they are requesting this information from the boarders that are living with you in the house, then they are most likely treating that situation as they are not tenants, but in fact non borrowers contributing to the household income hence the non borrower credit authorization form and bank statements being asked for. Due to the fact that the property is your primary residence and not technically classified as an investment or rental property, they may not be looking at their income in that way but rather just as household income contributors, in which case, according to the guidelines they would have to verify their income and occupancy status in the same manner they would for the borrower.

According to the guidelines;

Non-Borrower Household Income:

A non-borrower is someone who is not on the original note (and may or may not be on the
original security instrument), but whose income has been relied upon to support the mortgage
payment. Non-borrower household income that may be considered for HAMP qualification must
come from someone who resides in the residence. Examples include a non-borrower spouse,
parent, child or a non-relative, but in each case, a person who shares in the occupancy of the
home and provides some support for the household expenses.
Servicers should include non-borrower household income in monthly gross income if it is
voluntarily provided by the borrower and if, in the servicer’s business judgment, that the income
reasonably can continue to be relied upon to support the mortgage payment. Non-borrower
household income included in the monthly gross income must be documented and verified by the
servicer using the same standards for verifying a borrower’s income. If income is being used for
a non-borrower, the servicer should use only the income that the non-borrower will contribute to
the mortgage. The servicer must verify the occupancy of a non-borrower in the same manner it
verifies the occupancy of a borrower after obtaining written authorization from
the non-borrower to obtain the non-borrower’s credit report.

**Cat Damiano** · 06-15-2012, 10:33 AM

They should only use the amount that he contributes for the mortgage alone, and they do not need to look at his expenses as they are not a part of the calculations.

If income is being used for a non-borrower, the servicer should use only the income that the non-borrower will contribute to
the mortgage.

You can state that in an affidavit and attach it to his check stubs if they require his stubs along with the actual amount that he contributes.

**NJHomeowner** · 06-15-2012, 10:41 AM

Cat thank you. Do you, know being they are looking for his SS# will he in any way be responsible for the loan credit wise?

Originally Posted by Cat Damiano

They should only use the amount that he contributes for the mortgage alone, and they do not need to look at his expenses as they are not a part of the calculations.

If income is being used for a non-borrower, the servicer should use only the income that the non-borrower will contribute to
the mortgage.

You can state that in an affidavit and attach it to his check stubs if they require his stubs along with the actual amount that he contributes.

**Cat Damiano** · 06-15-2012, 10:42 AM

No he will not if he is not on the mortgage loan.

**NJHomeowner** · 06-15-2012, 10:56 AM

Thank you for that.

Also he is just moving back with us because he is getting a divorce. So unsure how the whole occupancy thing will work. His bank accounts have this address along with his employer pay stubs. I also believe his CC address is ours!!