Mortgage Navigator • Non-QM Underwriting
Asset Qualifier & Depletion Calculations
A large balance sheet can support qualification in more than one way.
Two different concepts
An asset-qualifier program may require a defined level of eligible assets relative to the loan or obligations. An asset-depletion program may convert eligible assets into calculated monthly income. Do not assume the terms are interchangeable.
Haircuts and exclusions
Retirement accounts, securities, restricted assets, business assets and funds used for closing may receive different percentages or be excluded. The depletion period also varies by investor.
Investor matrix, not a universal Non-QM rule. Bank-statement calculations, expense factors, DSCR formulas, asset haircuts, credit-event seasoning, LTV, reserves and documentation can vary materially by investor and lender. MortgageDadOf3 separates the concept from the actual program matrix so a lender overlay is not mistaken for an industry-wide rule.
Consumer-purpose loans still require the applicable consumer-protection analysis. For covered transactions, Regulation Z’s Ability-to-Repay framework generally requires a reasonable, good-faith determination of repayment ability. Alternative documentation is not the same thing as “no documentation.”
Consumer-protection references
CFPB / Regulation Z §1026.43 Ability-to-Repay · CFPB Qualified Mortgage explanation · IRS IVES transcript information