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Question 77

In Processing and evaluating applications""12 CFR 202.6, protected income part is also under discussion. Which of the following considerations is NOT its part?

Public assistance income may not consider whether an applicant's income is from a public assistance source

Public assistance income may consider as it relates to another pertinent element of creditworthiness

May consider length of time public assistance income will be received, whether the applicant will continue to qualify for the income, and whether the income can be garnished

Can discount or refuse to consider the following: Part-time income Annuities Pensions Retirement benefits Alimony, child support, and separate maintenance payments to the extent they are likely to be consistently made

Correct Answer: A

Under 12 CFR 202.6, the consideration that public assistance income may not be considered due to its source is incorrect. Lenders are required to consider public assistance income the same as any other income, as long as it is reliable and can be consistently made. This prohibition ensures that applicants receiving public assistance are not discriminated against simply because the source of their income is from a public assistance program.

Discussion

Dex24Option: D

D, page 127. You "cannot" discount or refuse...and D states you "can".

Cam22Option: B

B. Public assistance income may consider as it relates to another pertinent element of creditworthiness