Who must be obligated on the mortgage note to utilize repayment income?

The correct answer is that the borrower(s) who are obligated on the mortgage note must be the ones to utilize repayment income. This is because repayment income is the income that is evaluated by the lender to determine the borrower's ability to repay the loan. Only those individuals who are legally responsible for the debt, as indicated by their signatures on the mortgage note, have their income considered. This ensures that the income calculation is based on actual obligations and liabilities, providing a clear picture of the financial stability of those accountable for the loan.

In this context, while anyone living in the household could contribute to the financial well-being of the household, their income is not used for the repayment capacity analysis unless they are specifically named on the mortgage note. The lender does not calculate repayment income based solely on the presence of individuals in the household, nor is it necessary for the lender to be included on the note in terms of assessing repayment capacity. Therefore, focusing strictly on those individuals who are obligated serves the purpose of accurately determining financial responsibility and risk assessment for the loan.