In the underwriting notes of a loan, it was documented that the pertinent DSCR was based on stated income. In the past, this usually signified the usage of stated Revenue as allowed according to bank policy. However, in this case, the stated income mentioned was specific only to the personal income of 3 guarantors. If this was the case for a transaction that you were reporting on the CRA LR, would you report the Revenue Code based on the personal incomes, or would you document the Revenue as being unknown (3)?

Who is the borrower?

It is an LLC entity running and icehouse/bar owned by the 3 guarantors.

Note it is NOT a start-up.

From looking at the Q&A on GAR-

I would not report any guarantor income. Income is not revenues.

If the GAR for the entity was not collected, report 'not known'.

If the GAR was collected for the entity in the normal course of business, even though it was not relied on in the credit decision, you could report that amount for CRA purposes.

I would appreciate if someone would confirm if I am on the right track, and for the original poster's sake. This is something I have been trying to get more consistent with in our procedures as well.

I would agree. Use what you have for the borrower. Don't use income from individual guarantors. If they are unknown, then put unknown.

Never use guarantor income if it is an individual guarantor. You should use the guarantor income if it is a business affiliate of the borrower and if you collected and relied on that income and the affiliate guaranteed the loan.