Loan denied based on guarantor.

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Question:

How would a commercial application denied based on the DTI of the guarantor be handled? In this case, the credit report of the guarantor was used to determine their debt level.

Answer:

Guarantors are not borrowers. Remember the Adverse Action Notice will be sent to only the applicant, in this case the corporation. Under reasons for denial, the “other” box should be check and a statement such as “insufficient guarantor” stated.
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