In Appendix D of the HMDA Getting it Right Guide section 4(a)(10) #6 where it talks about “An institution reports the gross annual
income relied on in evaluating the creditworthiness of applicants.” It then later goes on to say “But an institution
does not include the income ofa guarantor who is only secondarily liable.”
Am I correct that an institution should consider the income of the guarantor in making the credit decision; however, for reporting purposes on the LAR, only the applicant’s income and not the guarantor’s should be reported. The appendix seemed a little contradictory in this sense and I was hoping to get some feedback. Thanks for your help.