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LendingRisk.com Mortage Industry Dictionary

Terminology, definitions, terms, explanations, and documents for business professionals in the mortgage lending and mortgage risk management industries.

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Stated Income / Stated Assets (SISA) Documentation

A documentation type description used to indicate that borrower's income and assets were not verified for loan qualification purposes. The borrower's qualifying ratios are determined on the basis of information disclosed on the loan application. The borrowers stated income is based upon the previous years income. Stated income should be consistent with income typically derived from the borrower's occupation. It is assumed that a borrower's stated income is the upper estimate of the borrower's actual income. Funds to close and assets are also determined on the basis of information disclosed on the loan application. Qualifying ratios based upon the borrowers stated income and assets should generally be below maximum acceptable qualifying ratios.

A loan with SISA Documentation represents a higher credit risk than a loan with Stated Income Documentation. Investors will have price adjustments and more restrictive Loan To Value (LTV) ratios associated with loans that have a SISA documentation type.

See Documentation Type
See Mortgage Loan Documentation Type Overview
See Stated Income Documentation

Stated Income Documentation

A documentation type description used to indicate that the borrower's income was not verified for loan qualification purposes. The borrower's qualifying ratios are calculated on the basis of information disclosed on the loan application. Liabilities and assets are verified according to full or alternative documentation type guidelines. A loan with Stated Income documentation represents a slightly higher credit risk than a loan with Full/Alt Documentation. Typically, there are price adjustments and more restrictive Loan To Value (LTV) ratios associated with loans that have a Stated Income documentation type.

See Alternative Documentation
See Documentation Type
See Full Documentation
See Mortgage Loan Documentation Type Overview
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Terminology, definitions, terms, explanations, and documents for business professionals in the mortgage lending and mortgage risk management industries.