HUD HOC Reference Guide

A credit report, which complies with HUD guidelines, is required for a non-purchasing spouse residing in a community property state or when a property to be insured is located in a community property state. A valid and reliable verified credit profile of the non-purchasing spouse must be established and their debts included in the borrower's ratio unless the lender can document, as regulated by state law, that the obligations may be excluded.

Although the non-purchasing spouse's credit history is not to be considered a reason for denial, it must be obtained in order to determine the debt-to-income ratios of the borrower. If there is an indication or discrepancy regarding the non-purchasing spouse's social security number or credit status, the lender remains responsible to exhaust all possible means to resolve the issue through direct contact with the Social Security Administration, a service provider with direct access to the Social Security Administration and/or the credit report agency.

The spouse's release to order and receive a credit report must be obtained by the lender. If the non-purchasing spouse refuses to provide authorization for the credit report, the lender would be unable to establish the borrower's liabilities, thereby making the loan uninsurable.

Please see: HUD Handbook 4155.1, Section 4.A.