The last time that I submitted a comment/question/complaint I felt that the response was incredibly disrespectful, so I would appreciate a more professional response this time.
I have a question about number #88 on the Knowledge Assessment. The questions states, “Which is the maximum amount that this client could afford for monthly rental payment…?”
The explanation of the problem states, “an affordable rental payment should be no higher than 30% of the client’s gross income… 30% of $2,080 equals $624.
$345= 31%- This ratio is most commonly used for FHA mortgage approval
$749= 36%- This BER is most commonly used for conventional mortgage approval
$582= 28%- This FER is most commonly used for conventional mortgage approval”

I tried going to Module 2.2 pages 20-27 to find more information and couldn’t find anything. I understand that the $749 answer goes with the Back-End Ratio for rentals.
In all of my reviewing I have been unable to locate where the math is actually explained and where it’s stated that you need to use BOTH the FER AND BER in the Maximum Monthly Housing Payment Formulas (Obviously you have to use them 2 separate times, because the have different formulas, but its not stated that you have the use both Max Monthly Formulas). So my question is: Where is that information specifically so that I can review more? Please don’t replay with Module 2.1 because its not stated there, and the formula in the PDF is wrong, along with the sample problem on pages 19-20.