Disclose Business CC for mortgage application?

If it doesn't show up on your credit report (and none of mine do), I would say no.

Glitch99 said:   woolooloo said:   If it doesn't show up on your credit report (and none of mine do), I would say no.That's the same flawed logic that concludes if you dont get a 1099 the income isnt taxable.It may be flawed logic, but with as picky and illogical as underwriters often are, does it really make sense to give them any ideas about digging into your business activities if it's not required for mortgage approval?

I suppose omitting this information would technically be "mortgage fraud", but I seriously doubt it would be pursued as such. There's also the matter of how much outstanding balance we're talking about. A $10k biz card balance most likely isn't that big a deal... $100k, different story.

okwiater said:   I suppose omitting this information would technically be "mortgage fraud", but I seriously doubt it would be pursued as such.
And certainly not if you actually pay off the mortgage.

woolooloo said:   Glitch99 said:   woolooloo said:   If it doesn't show up on your credit report (and none of mine do), I would say no.That's the same flawed logic that concludes if you dont get a 1099 the income isnt taxable.

Um, no. non-1099 income is clearly taxable based on the tax code. Show me the "credit code" that shows what is reportable here. My business has it's own cash flow that handles its debt service, just because I am ultimately the payer of last resort doesn't make this a clear cut issue.So what part of this is relevant to your claim that "if its not on your credit report, theres no need to disclose"? I never said they should or shouldn't be disclosed, just that your logic as to why is flawed.

Glitch99 said:   woolooloo said:   Glitch99 said:   woolooloo said:   If it doesn't show up on your credit report (and none of mine do), I would say no.That's the same flawed logic that concludes if you dont get a 1099 the income isnt taxable.

Um, no. non-1099 income is clearly taxable based on the tax code. Show me the "credit code" that shows what is reportable here. My business has it's own cash flow that handles its debt service, just because I am ultimately the payer of last resort doesn't make this a clear cut issue.So what part of this is relevant to your claim that "if its not on your credit report, theres no need to disclose"? I never said they should or shouldn't be disclosed, just that your logic as to why is flawed.

The logic is that the credit industry considers it (rightly) a business debt and that is why it doesn't show up on your personal credit report. If the credit industry itself doesn't consider it primarily a personal debt and doesn't put it on your personal credit report, why would a person apply a different approach to disclosing personal debt on a mortgage application?

Does the names Kenneth Lay and Enron ring any bells for you. Regulation U of the Federal Reserve Board covers two types of loans. One is a purpose loan where you have borrowed money to buy stock on a margin. The second is a nonpurpose loan which was in Ken Lay's case his 6th condo/home. Mr Lay failed to disclose two credit accounts one AMEX an the Visa which were issued to him by Enron and for which he was jointly liable. Of all the charges in the Enron disaster that was the one that the feds had a cinch conviction. The loan was made through a FDIC insured depository so Reg U applies so he was convicted of making false statements in his credit application. For the more pedestrian defendant like you, you might contact a law firm like this. http://www.andersonthomaslaw.com/White-Collar-Crimes/False-State... or http://www.pelleylaw.com/Theft-Crimes/False-Statement-to-Obtain-... http://www.law.cornell.edu/uscode/text/18/1014 speaks to mortgage loans among a host of other sins. It is a big enough deal that there are federal criminal lawyers who specialize in defense of fraudulent credit applications. Prosecution is just like being indicted for false statements on a tax return. It has been a real bonanza in the last 4 or 5 years. Like anything else no worry as long as nothing goes wrong. They seldom catch more than 1 out of 10.

In my recent experience, banks are scrutinizing mortgage applications much, much more than before. If you are making payments on this card they may well take note of it when reviewing your bank account transactions.

On most residential mortgage apps , you don't even list debts . The lender pulls your credit and lists them from the report.

Lenders report your debts falsely on every single mortgage app, by counting cards you pay in full each month As a monthly debt which goes against your debt to income ratio. They are not swayed by any facts and will intentionally report the debts in a way that hurts you, even if it's not factually correct, and they will refuse to change it unless you pay the accounts in full, stop making further charges, AND wait for the bureaus to update with the new data showing zero balance . Seeing as how lenders believe nothing you tell them about debts and that they will only rely on what's reported by a bureau , I say LET them rely on what's reported by the bureau.

They Won't believe anything you tell them anyway. Unless it hurts you, of course