Monthly Obligations Not Included in Liabilities

Some obligations, often identified on a borrower’s paystub, are not considered a liability and will not be included as a debt or deducted from the borrower’s gross income when considering the borrowers risk profile. These obligations include items such as

• federal, state, and local taxes;

• Federal Insurance Contributions Act (FICA) or other retirement contributions, such as 401(k) accounts (including repayment of debt secured by these funds);

• commuting costs;

• union dues; and

• voluntary deductions.