Lender altered loan mod data w/o permission, add child support as income

[TiredTurnip79]

I applied for a loan modification, supplied all the documentation including: hardship affidavit, pay stubs, budget worksheets, HOA payment stubs, bank statement exports and tax returns (on the hardship affidavit form there is a section for child support/alimony with an asteric by it but no footnote).

I did not voulenteer or disclose child support as income, I never do on any loan applications since even the IRS rules state that it is income of/for the child and it not taxed or deductible as income of the payee or recipient.

When my mortgage company revieved my application they saw on my bank statements that I recieve child support so they altered my application to the program without my permission, added my child support as "income" even though I did not voluntarily disclose it on the hardship affidavit. With this added child support as "income" the lender determined I no longer qualify for the loan modification because my payment is less than 31% of my income. However they also made the mistake of using only a PITI payment to determine my housing to income ratio (they did not include my HOA dues which they are supposed to do).

I think, when they altered my loan application/hardship affidavit and "forcibly" declared my child support as income this is a violation of my rights under the ECOA (§ 202.5(d)(2))? Is that right?

Any help would be great!
Thanks!

[Evan Bedard]

Hi tiredturnip79 welcome and thank you for joining.

Im not exactly sure if this is a violation or not... Every case I have seen were the homeowner collects child support, that income was used as part of the modification as well..

[jakelabry]

Yeah - that's a tricky one. If the money is to support the, part of supporting the child includes housing so ... This is what the guidelines say about income:

"The borrower’s Monthly Gross Income is the amount before any payroll deductions includes wages and salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payment, including Social Security received by adults on behalf of minors or by minors intended for their own support, annuities, insurance polices, retirement funds, pensions, disability or death benefits, unemployment benefits, rental income and other income."

See it here:

http://www.treas.gov/press/releases/...guidelines.pdf

[TiredTurnip79]

Nope, not tricky.

I just found the answer, if you go to the document that is on the website (mine happens to be a loan backed by Fannie Mae) "HAMP Trial Period Plan"

Right in the contract 1.(d) states
"
D. I am providing or already have provided documentation for all income that I receive (and I understand that I am not required to disclose any child support or alimony that I receive, unless I wish to have such income considered to qualify for the Offer);"

[bittersweetme]

NICE WORK Tired Turnip, I was wondering about that also. I think you have a VERY VALID point. Hope it all works out for you... keep us posted !

[TiredTurnip79]

I also found another resource for this:
"Monthly gross income is the total of the borrower’s and all co-borrowers’ income before any payroll deductions, including base pay, commissions, fees, tips, bonuses, housing allowances, and any other compensation. Alimony and child support are considered only if the borrower chooses to include such income. " applies to the HAMP and HARP because they are components of the MHA Obama effort http://www.financialstability.gov/docs/counselor_qa.pdf

[mel239]

mines a little different but Id like to share-when I refinanced,my broker-or whatever they call the guy who fills out your application,changed the rental income of my other house from 1000 to 2000 and deleted two of my children-how weird...