Skip to main content

​
What this task is

This task collects the executed, unredacted divorce decree when the borrower has support-related liabilities, such as alimony or similar obligations, that appear in the credit profile or application. The decree typically outlines:
  • Who is obligated to pay support,
  • The amount and frequency of payments, and
  • The duration or conditions under which the obligation continues.

​
When this task is required

This task is required when:
  • A liability is associated with alimony or similar support, and
  • The underwriter must determine:
    • Whether the obligation should be included in DTI, and
    • How long it will continue beyond closing.
It may also be requested if the borrower discloses alimony even if it is not yet visible on credit.

​
Why this task is required

Support obligations can have a significant impact on a borrower’s monthly obligations and residual income. The divorce decree:
  • Provides the authoritative legal source for the amount and duration of payments.
  • Helps underwriters determine whether support is temporary or long-term.
  • Ensures the loan file treats the obligation consistently with legal requirements and program guidelines.
Without the decree, the lender may have to:
  • Make conservative assumptions about the support amount and duration, or
  • Treat the file as incomplete, delaying underwriting decisions.

​
Documents needed to resolve this task

To satisfy this task, provide:
  • The complete, executed divorce decree, including:
    • All pages relevant to support obligations, property settlements, and continuing financial responsibilities.
    • Any amendments or modifications that change support amounts or terms.
  • If the decree is older and support terms have changed, also provide:
    • Any court orders or agreements that update the original support provisions.
These documents allow the underwriter to correctly reflect support-related liabilities in the borrower’s DTI and overall risk profile.