Standards for Documenting a Nontraditional Payment History Obtained From the Borrower

For documentation obtained directly from the borrower, the following standards must be met:

• documentation that describes the terms of the debt repayment or contract together with canceled checks or copies of bills marked “paid” that reflect the borrower’s payment history over the most recent consecutive 12 months.

• withdrawals or debits on the borrower’s bank statements that show the payee information clearly listed for the creditor and that payments were made on a consistent basis over the most recent consecutive 12 months.