Under West Virginia state law, what must a licensee document if a borrower's debt-to-income ratio exceeds a certain percentage?

When a borrower's debt-to-income ratio exceeds a specific percentage, West Virginia state law requires the licensee to document an assessment of the borrower's ability to repay the loan. This requirement is crucial for ensuring that the lender understands the borrower's financial situation and can make informed lending decisions.

The underlying principle is to promote responsible lending practices and mitigate the risk of borrowers defaulting on loans. By evaluating a borrower's ability to repay, lenders can consider various factors such as income stability, employment history, and existing financial obligations. This documentation helps safeguard both the lender's interests and the borrower's financial health, ensuring that the borrower can manage their repayment obligations without undue strain.

Other aspects, such as proof of creditworthiness, borrower's financial goals, and loan purpose declarations, while important in their own right, do not specifically address the immediate concern of debt-to-income ratios. These additional elements may play a role in the overall assessment but do not replace the necessity of documenting the borrower’s ability to repay when their debt-to-income ratio suggests potential financial strain.