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Mortgage Broker Licensing Practice Exam · Question

Scenario 26: The Total Debt Service (TDS) ratio differs from GDS because it ALSO includes:

TDS adds all other monthly debt obligations (loans, cards, LOC, etc.) on top of housing costs used in GDS. The correct answer is "Other monthly debt obligations

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Question: Scenario 26: The Total Debt Service (TDS) ratio differs from GDS because it ALSO includes:

Answer options:

  • Only utility bills ✅ Other monthly debt obligations such as loans, credit cards and lines of credit
  • Future planned purchases
  • Lifestyle expenses such as groceries

Correct answer: Other monthly debt obligations such as loans, credit cards and lines of credit

Explanation: TDS adds all other monthly debt obligations (loans, cards, LOC, etc.) on top of housing costs used in GDS. The correct answer is "Other monthly debt obligations such as loans, credit cards and lines of credit". This capacity-fill scenario 26 reinforces the same competency for the mortgage-broker bank and follows the certified explanation standard.

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