When one spouse is the applicant for a direct loan but states the other spouse is not involved, what should the loan officer do?

The most appropriate action for the loan officer in this situation is to process the application based solely on the financial information provided by the applying spouse. When one spouse is the applicant and explicitly states that the other spouse is not involved, it indicates that only the applying spouse's financial circumstances will be considered for the loan application.

In many cases, especially with direct loans, the applicant may choose not to include their spouse's financial information because they may not want to be influenced by the spouse’s financial standing or may have a valid reason for pursuing the loan independently. The loan officer must respect the applicant's decision and proceed with the information at hand.

Therefore, it is critical for the loan officer to assess the application based solely on the applying spouse's financial profile, ensuring that all necessary documentation related to the applicant's finances is complete. This approach also upholds the privacy of both spouses since the applying spouse indicated that the partner is not involved.

Selecting any other option could lead to unnecessary complications or intrusions into the financial privacy of the couple, potentially resulting in heightened tensions or dissatisfaction with the loan process.