Unsecured Line of Credit Requirements From Small Regionals

[Bryan Hancock]

I visited with one of our banks today and they laid out the monkey math they used to underwrite LOC increases. Their 3 main criteria were:

1.  760+ FICO

2. DTI lower than high 30% range

3.  2X liquidity

For item 2 our banker claimed that they'd only count 25% - 50% of rental income for the "I" (denominator) in the DTI calculation.

Has anyone seen similar underwriting?  This seems quite punitive.  One of my banker buddies said other banks take all income and count 70% of the total, with 30% used for personal expenses; which seems equally dumb.  

Any thoughts banker guys or others?