What this task is
This task collects the lease agreement associated with a lease-payment liability reported on the borrower’s credit profile. Unlike a property lease for rental income, this relates to lease obligations that function as debt, such as:- Vehicle leases, or
- Other equipment or personal property leases.
- The monthly payment amount,
- The remaining term, and
- Any early termination or payoff provisions.
When this task is required
This task is required when:- A liability is categorized as a Lease Payment, and
- The loan is being underwritten to either:
- Include the liability in DTI, or
- Consider it for payoff or exclusion (for example, if being paid off at or before closing).
- The lease is to be paid off or bought out, or
- There is a question about the remaining term or residual obligations.
Why this task is required
Lease agreements can be structured in many ways, and their true economic impact is not always obvious from a credit report. The agreement helps the underwriter:- Confirm the correct monthly payment and remaining duration.
- Determine whether there is a residual or balloon obligation at lease end.
- Assess the impact of paying off or terminating the lease in connection with the new mortgage.
- Make incorrect assumptions about the payment or term, or
- Be unable to verify that a proposed payoff or exclusion meets program rules.
Documents needed to resolve this task
To satisfy this task, provide:- The complete, signed lease agreement underlying the liability:
- All pages, unredacted, including any addenda that modify payment, term, or end-of-lease options.
- Clear indication of payment schedule, remaining term, and any residual value or purchase option.
- If the lease is being paid off or bought out, also provide:
- Any payoff quotes or buyout offers from the lessor, along with proof of payment once completed.