Indiana § 24-9-4-8 Repayment ability; commercially reasonable practices to determine
debt to income ratio

Indiana Statutes

§ 24-9-4-8 — Repayment ability; commercially reasonable practices to determine debt to income ratio

Indiana·Art. 9 HOME LOAN PRACTICES·Ch. 4 Additional Prohibitions for High Cost Home Loans

(a)A creditor may not make a high cost home loan without regard to repayment ability.

(b)If a creditor presents evidence that the creditor followed commercially reasonable practices in determining the borrower's debt to income ratio, there is a rebuttable presumption that the creditor made the high cost home loan with due regard to repayment ability. For purposes of this section, there is a rebuttable presumption that the borrower's statement of income provided to the creditor is true and complete.

(c)Commercially reasonable practices include the use of:

(1)the debt to income ratio:

(A)listed in 38 CFR 36.4337(c)(1); and

(B)defined in 38 CFR 36.4337(d); and

(2)the residual income guidelines established under:

(A)38 CFR 36.4337(e); and

(B)United States Department of Veterans Affair

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(a) A creditor may not make a high cost home
loan without regard to repayment ability.
(b) If a creditor presents evidence that the creditor followed
commercially reasonable practices in determining the borrower's debt
to income ratio, there is a rebuttable presumption that the creditor made
the high cost home loan with due regard to repayment ability. For
purposes of this section, there is a rebuttable presumption that the
borrower's statement of income provided to the creditor is true and
complete.
(c) Commercially reasonable practices include the use of:
(1) the debt to income ratio:
(A) listed in 38 CFR 36.4337(c)(1); and
(B) defined in 38 CFR 36.4337(d); and
(2) the residual income guidelines established under:
(A) 38 CFR 36.4337(e); and
(B) United States Department of Veterans Affairs form
26-6393.

Indiana § 24-9-4-8 (Repayment ability; commercially reasonable practices to determine debt to income ratio) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.