Why this document matters
A credit report acquired during the loan process frequently reveals a credit inquiry that necessitates an explanation from the borrower. This form allows the borrower to furnish that explanation. The objective of obtaining this information is to confirm that the borrower has not undertaken any new debt that has not yet been reported to the credit bureau, which would impact loan qualification. Credit inquiries may indicate new debt obligations that haven’t appeared on credit reports yet, which could impact DTI calculations and loan qualification. Without proper explanation, credit inquiries may require additional verification or delay underwriting.When this document is requested
This document is requested when:- Credit inquiries found on credit report that need explanation
- Recent inquiries that may indicate new debt
- Underwriting requires explanation for specific inquiries
- Need to verify all debt obligations are disclosed on application
Required data fields
Borrower information fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Borrower name | String | Yes | Borrower entity | Full legal name, repeatable for N borrowers |
| Loan number | String | Yes | Loan entity | Alphanumeric identifier |
| Property address | String | Yes | Loan entity | Full street address of property being financed |
Credit inquiry fields (repeatable up to N times)
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Inquiring creditor | String | Yes | User input | Name of creditor who made the inquiry |
| Did not incur new debt | Boolean | Conditional | User input | Required if no new debt was incurred from this inquiry |
| Did incur new debt | Boolean | Conditional | User input | Required if new debt was incurred from this inquiry |
| Balance | Number | Conditional | User input | Required if new debt was incurred, amount in dollars |
| Monthly payment | Number | Conditional | User input | Required if new debt was incurred, amount in dollars |
Certification fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Certification acknowledgement | Boolean | Yes | User input | Confirms no other debt obligations beyond what’s on the application, acknowledges mortgage fraud penalties |
Signature fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Borrower signature | Signature | Yes | E-signature | Digital signature with timestamp, repeatable for N borrowers |
| Signature date | Date | Yes | E-signature | Auto-populated on signature, repeatable for N borrowers |
Suggested questions for data collection
| Question | Response Type | Validation |
|---|---|---|
| ”Borrower #X: What is your full legal name?” | Text input | Required, min 2 words, repeat for each borrower |
| ”What is the property address?” | Text input | Auto-populated from loan entity |
| ”Credit Inquiry #X: What is the name of the inquiring creditor?” | Text input | Required, name of creditor who made the inquiry |
| ”Credit Inquiry #X: Did you incur any new debt from this inquiry?” | Yes/No | Required |
| ”Credit Inquiry #X: If yes, what is the balance of the new debt?” | Number input | Required if new debt was incurred, positive number, format: currency |
| ”Credit Inquiry #X: If yes, what is the monthly payment for the new debt?” | Number input | Required if new debt was incurred, positive number, format: currency |
| ”Do you acknowledge and certify that you have no other debt obligations beyond what you’ve provided on the loan application, and that knowingly withholding debt information is mortgage fraud?” | Yes/No | Required, must be Yes |
| ”Please sign and date this document” | E-signature | Required, includes timestamp |