A loan applicant states that she will be employed in another position with her current employer, but it will result in an income decrease. The mortgage loan originator should:

Using expected future income, especially if it indicates a decrease, is not advisable because it does not accurately reflect the borrower’s current financial capacity. Lenders need to assess income that is stable and reliable, and forecasting a decrease introduces risk into the lending decision.

Even if the income decrease occurs after the loan is finalized, the mortgage loan originator must still consider the applicant's current financial status. The purpose of the application is to evaluate the applicant's ability to make payments based on existing income, not future projections that may not materialize.

While equity can provide some security for a lender, it does not mitigate the risk of lending to someone whose income is set to decrease. The loan's approval should primarily depend on the borrower's ability to repay based on current income levels, rather than potential assets or equity that may not guarantee payment capacity.