Why is the borrower's DTI high when the 'Debts' tab looks fine?
The Goal:
Understand why DTI appears higher than expected and where to find the full picture.
How-To:
Open the loan and navigate to the 'Debts' tab this shows consumer credit obligations only (credit cards, auto loans, student loans)
Now navigate to the 'REO' tab this is where mortgage payments and property-secured liens are recorded
The automated underwriting engine calculates DTI using BOTH sources consumer debts + REO payments
If mortgage payments of $2,000+ are in the REO section, these will significantly impact DTI even if the Debts tab looks clean
Verify the accuracy of monthly payments in the REO section errors here are the most common driver of unexpected DTI outcomes
ℹ️ How DTI Is Calculated |
DTI = Total Monthly Debt Obligations ÷ Gross Monthly Income |
Monthly Debt includes: consumer credit (Debts tab) + mortgage payments (REO tab) + qualified HELOC payment |
The Debts tab shows only consumer debts mortgages are intentionally separated to the REO tab for clarity |
The DTI shown on the summary page is always the complete figure including all sources |
✅ Pro Tip |
If a borrower transitions from 'Pre-Approved' to 'Ineligible', check the REO section first a newly discovered or updated mortgage payment is almost always the cause |