Risk Grade Modifiers Clause Samples

Risk Grade Modifiers a. Pre-Loan Debt-To-Income Ratio (DTI-1) Borrower’s capacity to repay is a primary factor in establishing loan default risk. DTI measures the ability of Borrower’s income to cover debt service. Sub-Grade is adjusted up or down in accordance with the DTI ratio using a grade adjustment system as depicted in the Modifier Table in Credit Policy VI.c.