A borrower has a DTI of 48% but compensating factors including 12 months reserves and a 780 credit score. Under conventional guidelines, which statement best describes the underwriter's likely approach?
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A
Automatic denial because DTI exceeds 45%
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B
May approve using DU/LP with documented compensating factors
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C
Must reduce the loan amount until DTI falls below 36%
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D
Requires a co-borrower to lower the DTI