> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
> Use this file to discover all available pages before exploring further.

# Proof of Payment by Other Party

> Provide evidence that another party has been making payments on a liability so it can be excluded from the borrower’s debt-to-income ratio when permitted.

## What this task is

This task collects documentation showing that a **liability listed on the borrower’s credit report is actually being paid by another party**, not the borrower.
The liability remains in the borrower’s name, but **another individual or entity has consistently made the required payments**.

## When this task is required

This task is required when:

* A liability is coded with an **exclusion reason of “Paid By Others”**, and
* The loan is being underwritten under guidelines that allow **exclusion of such debts** from the borrower’s qualifying ratios if strict documentation standards are met.

Common examples include:

* A **co-signed auto loan** where the primary driver has made all payments.
* A **joint credit card** regularly paid by an ex-spouse or business partner.

## Why this task is required

Lenders can only exclude a debt from the borrower’s **debt-to-income ([DTI](/entity-models/key-concepts/dti))** when they have strong evidence that:

* The borrower is **not responsible for making the ongoing payments in practice**, and
* Another party has a consistent history of **timely payments over a required lookback period**.

Proof of payment by others helps underwriters:

* Confirm that excluding the liability will not **understate the borrower’s true obligations**.
* Document compliance with **agency or investor rules** around co-signed or joint debt.
* Reduce the risk that the borrower will end up responsible for the debt again shortly after closing.

Without this documentation, the lender must generally **include the full payment in [DTI](/entity-models/key-concepts/dti)**, even if another person is currently paying it.

## Documents needed to resolve this task

To satisfy this task, provide:

* Evidence covering the **most recent 12 months (or program-required period)** of payments made by the other party, such as:
  * **Cancelled checks, bank statements, or electronic payment confirmations** clearly showing the **payer is someone other than the borrower**, and
  * Corresponding **account statements** showing the liability is being credited as paid.
* Any **court orders, divorce decrees, or formal agreements** that assign responsibility for the debt to the other party can further support the case, though they typically **do not replace the need for payment history**.

These documents allow the underwriter to confidently **exclude the liability from [DTI](/entity-models/key-concepts/dti)**, when guidelines permit, without understating the borrower’s financial obligations.