Reply To: Ability To Repay Charge OFF Debt


This largely a matter of bank policy. Some lenders will not make a loan to a borrower with a recent charge-off. The regulation does not contain a ATR worksheet. Apparently your bank has built one or adopted one developed by a third party. If your policy allows loans to an applicant with a recent charge-off, then determine if your policy requires the charged-off debt to be included in the debt on your worksheet.