review and calculate military income...reserve duty income if the borrower is a member of a reserve...
TRANSCRIPT
Reviewing and Calculating Military
Income
December 2019
©2019 Genworth Financial, Inc. All rights reserved.
1Review and Calculate Military Income
Objective
Understand the different types of income and the Leave and Earning
Statement (LES)
– Military Status
– Documentation Requirements
– Documentation Review
– LES Review Reference Guide
2Review and Calculate Military Income
The Mortgage Application 1003/65 URLA
https://www.fanniemae.com/content/news/urla-announcement-september-2017.pdf
Fannie Mae’s URLA Page
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https://www.fanniemae.com/singlefamily/uniform-residential-loan-
application?utm_source=fanniemae&utm_campaign=best_match
Freddie Mac’s URLA Page
4Review and Calculate Military Income
http://www.freddiemac.com/singlefamily/sell/ulad.html
https://www.fanniemae.com/singlefamily/uniform-residential-loan-application
5Review and Calculate Military Income
New URLA (1003)
6Review and Calculate Military Income
Military Status
Enlisted
– Enlistment
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Officer
– Non-Commissioned (NCO)
– Commissioned
Review and Calculate Military Income
For Borrowers Who Are Active-Duty Members Of The United States Armed Forces, A
History Of Military Employment Is Not Required For The Employment To Be
Considered Stable
Employer
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Military Compensation
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http://militarypay.defense.gov
Military Compensation
12Review and Calculate Military Income
http://militarypay.defense.gov
Military Income- Fannie Mae
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https://www.fanniemae.com
Verification of Military Income- Fannie Mae
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When a Borrower is in the Military, in lieu of a Verbal or Written VOE,
the Lender must obtain either
– A Military Leave and Earnings Statement (LES) dated within 30 calendar days
prior to the note date or
– A Verification of employment through the Military Lending Act (MLA) website
• https://mla.dmdc.osd.mil/mla/#/home
Review and Calculate Military Income
Military Income- Freddie Mac
Military income A Borrower who is a member of the United States Armed
Forces in active duty, a history of military employment is not required for the
employment to be considered stable.
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Military Income- Freddie Mac
Military income, entitlements: A Borrower who is a member of the United
States Armed Forces may receive pay entitlements such as flight or hazard
duty, rations, clothing allowance or quarters allowance in addition to base
pay. The Seller may consider entitlements qualifying income if documented
and likely to continue for the next three years.
16Review and Calculate Military Income
Military Income- Freddie Mac
Reserve duty income If the Borrower is a member of a reserve component
of the United States Armed Forces, the Seller may consider the reserve
duty income for qualifying. A history of receipt of one year is required for the
income to be considered stable
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If reviewing a written VOE
Current Military Active-duty
employment base (basic) pay and
entitlement income
▪ Date employment began
▪ Current position
▪ Base (basic) monthly pay
▪ Current monthly entitlement
income (e.g., rations, clothing,
quarters)
▪ Year-to-date earnings with paid
through date
▪ Earnings from most recent one-
year calendar period
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Current Military Reserve or
National Guard income
▪ Date employment began
▪ Current position
▪ Year-to-date earnings with paid
through date
▪ Earnings from most recent one-
year calendar period
Review and Calculate Military Income
Leave and Earning Statement (LES)
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Name
SS#
Pay Date
YRS SVC
ETS
Period Covered
Entitlements
Allotments
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Fannie Mae Selling Guide
The following table contains examples of income types with and without defined expiration dates. This
information is provided to assist lenders in determining whether additional income documentation may be
necessary to support a three-year continuance. Note that lenders remain responsible for making the final
determination of whether the borrower’s specific income source has a defined expiration date.
ETS- Expiration Term of Service
888888 is indefinite service
16/03/17- Term of Service ends March 17, 2016
Military Income
Military Service
Reenlistment can be
requested up to 1 ½ years
prior to but typically no later
than 90 days of the military
members ETS.
The request to reenlist is not
automatic & must be
approved.
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LES Review- Entitlements
22Review and Calculate Military Income
Base Pay*BAS- Food
*BAH- Housing
Special Pays Examples Include:
– HDP Hardship Duty
– HDIP Hazardous Duty Incentive Pay
– AIP Assignment Incentive Pay
– CZTE Combat Related Special
Compensation
– HFP Hostile Fire Pay/IDP Imminent
Danger Pay
– FSA Family Separation Pay
*Determined by # of dependents, rank, & zip code of home base
http://militarypay.defense.gov/
LES Review- Allotments
23Review and Calculate Military Income
Review For-Loans
Child Support
Housing- If the military member is
living in on base housing you will
see an allotment here
LES Review Reference
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http://www.military.com/spouse/military-benefits/money-management/how-to-read-a-military-les-leave-
and-earnings-statement.html
Review and Calculate Military Income 25
LES
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Genworth Rate Express®
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Genworth Underwriting Guidelines
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LOS Connections
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Training Tools and Information
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Training Tools and Information
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Additional MI Site Information
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➢ ActionCenter®: 800 444.5664
➢ Your Local Genworth
Regional Underwriter
➢ Your Genworth Sales
Representative
Your Genworth Resources
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accuracy, we also know that any discussion of laws and their application to particular facts is subject to
individual interpretation, change, and other uncertainties. Our training is not intended as legal advice, and is
not a substitute for advice of counsel. You should always check with your own legal advisors for
interpretations of legal and compliance principles applicable to your business.
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