If Debt Service Coverage (DSC) is the ratio calculated for underwriting a HMDA-covered business-purpose loan instead of Debt-to-Income(DTI), should the bank report the DSC in the DTI column?
Generally DSC is used for businesses and non-natural persons. If that’s the case it would not apply. If the ratio is used with a business-purpose, natural person and it’s a ratio of the applicant’s monthly debt to monthly income, then yes. But again, ensure we’re talking about a ratio for a natural person applicant or borrower.
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