Self-employed

Fannie Mae & Freddie Mac – Self-Employed: Will Fannie or Freddie allow a borrower who has been self-employed for less than 2 years?

Answer: Yes, both agencies (Fannie/Freddie) offer a path for someone with less than two years in self-employment, but never less than one year. The less-than-two-year path requires that the borrowers worked in a similar field, among other things. Reference: Fannie Mae B3-3.2-01, Underwriting Factors and Documentation for a Self-Employed Borrower (12/04/2018) Introduction This topic contains [...]

2019-06-19T09:59:11-05:00June 25th, 2019|

Fannie Mae & Freddie Mac – Liquidity Calculation: Do Fannie Mae and Freddie Mac have the same liquidity calculation for self-employed income? NEW – Liquidity Calculator

Answer: You should be able to use the same calculator for either agency; since the methodology is the same, the calculation itself mathematically does not change between the agencies.  Mortgage Currentcy has a liquidity calculator hosted on their site under charts & checklists, category Universal. Supporting Resources Liquidity Calculator [Article Published in Rule & Regulation [...]

2019-05-23T14:57:10-05:00May 24th, 2019|

Freddie Mac – Loan Product Advisor Release Notes – Dated March 31, 2019

Written By: Lloyd Rutherford, Staff Writer A loan originator’s greatest talent may be understanding how to use the AUS systems.  The agencies provide ample information and resources to help you get it right the first time. This article highlights the release notes for March and April. Rule Synopsis: Freddie issues March update to Loan Product Advisor [...]

2019-04-09T11:50:06-05:00April 10th, 2019|

Freddie Mac – Multiple Selling Guide Updates – Bulletin 2019-5 – Dated March 6, 2019 – Updated-Divorced & Separated Borrowers Chart – All Agencies

Written By: Lloyd Rutherford, Staff Writer This is a big update with a lot of important changes from Freddie Mac.  Take the time to digest the upcoming rule changes by reading through this article and the accompanying bulletin. Rule Synopsis: Freddie Mac is updating their selling guide for a variety of topics. This article will [...]

2019-03-10T14:30:04-05:00March 10th, 2019|

Fannie Mae – Self-Employed Income: Can I use the personal returns of a self-employed borrower to document income, or do I also need business tax returns? [NEW Calculator – Fannie Mae Form 1088 – Business Income Comparative Analysis]

Answer: This really depends on whether or not your borrower meets the exception for waiving the requirement for business tax returns.  See the highlighted portion below.  If your borrower is not exempt, then the lender will need to evaluate the business income.  If the business income is required to be analyzed, Fannie Mae has a [...]

2019-01-25T08:37:53-05:00January 25th, 2019|