reviewing miscellaneous employment income sources · presentation title. insert legal copy. 43....
TRANSCRIPT
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Reviewing Miscellaneous Employment Income Sources
December 2019
©2019 Genworth Financial, Inc. All rights reserved.
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1Reviewing & Calculating Income from Miscellaneous Sources
ObjectiveUnderstand the Different Types of Income and How to Document Them
– Commission– Bonus and Overtime– Tip Income– Temporary Leave– Seasonal & Unemployment
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Ability-to-Repay (ATR) Rule Key concepts of the rule:
– The creditor must make a reasonable and good faith determination that the consumer has the ability to repay the loan.
• Mortgage borrowers must provide ample financial documentation; lenders must verify the documents.
• In order to be approved for a particular home loan, the borrower must have sufficient income and assets to repay the loan.
2Review and Calculate Base Income
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3Review and Calculate Base Income
The Mortgage Application 1003/65
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4Review and Calculate Base Income
URLA Page
http://www.freddiemac.com/singlefamily/sell/ulad.html
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5Review and Calculate Base Income
https://www.fanniemae.com/singlefamily/uniform-residential-loan-application
URLA Page
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6Review and Calculate Base Income
https://www.fanniemae.com/singlefamily/uniform-residential-loan-application
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7Review and Calculate Base Income
Two year history is required on the 1003 for all applicants
Verifying Employment History
Is the Borrower Self Employed?
– Spell out the full, complete business name and address.– Correctly identify type of employment:
• Does the borrower receive a W2 or 1099?• If the borrower owns 25% or more of the business, they are self-employed.• Note- A borrower may be self-employed and get a W2 from that business.
– Years on job and employed in line of work will be compared to job title and credit report.
– Title/Type of Business should convey enough information to:• Convey what duties the borrower performs.
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*New
*
*
Enter the Employer’s main number. Do NOT list the borrower’s personal work phone number that was collected in Section 1a.
Verifying Employment History
Review and Calculate Base Income
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*New
*
Verifying Non-Employment Income
Review and Calculate Base Income
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Freddie Mac
10Reviewing & Calculating Income from Miscellaneous Sources
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Selling Guide Income Topic 5300 Revised
11Reviewing & Calculating Income from Miscellaneous Sources
https://guide.freddiemac.com/app/guide/topic/5300
https://guide.freddiemac.com/app/guide/content/a_id/1000659
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Selling Guide Income Topic 5305.2
12Reviewing & Calculating Income from Miscellaneous Sources
https://guide.freddiemac.com/app/guide/content/a_id/1000659
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Income Continuance Requirements
13Reviewing & Calculating Income from Miscellaneous Sources
Freddie Mac’s Single-Family Seller/Servicer Guide Series 5000: Origination and Underwriting
Topic 5300: Stable Monthly Income and Asset Qualification Sources
Chapter 5301: General Requirements for All Stable Monthly Income and Asset Qualification Sources
Income continuance charts were added to Topic 5301.1– Income and earnings types typically without documentable
continuance– Income types with documentable continuance– Other income types that may or may not have documentable
continuance
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Employed Income Types
14Reviewing & Calculating Income from Miscellaneous Sources
Primary
SecondaryAdditional
Freddie Mac’s Single-Family Seller/Servicer Guide Topic 5300
Primary– Borrower’s primary source of employed income
Secondary– Second job, part-time job or multiple jobs
Additional– Commissions– Bonus– Overtime– Tips– Auto allowance– Mortgage differential– Military entitlements– Military Reserves & National Guard– Unemployment with seasonal employment
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Loan Product Advisor Documentation Matrix
15Reviewing & Calculating Income from Miscellaneous Sources
https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf
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Fannie Mae
16Reviewing & Calculating Income from Miscellaneous Sources
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17Reviewing & Calculating Income from Miscellaneous Sources
https://www.fanniemae.com/content/guide/selling/b/index.html
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Fannie Mae Commission Income
18Reviewing & Calculating Income from Miscellaneous Sources
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Freddie Mac Commission Income
19Reviewing & Calculating Income from Miscellaneous Sources
https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf
https://guide.freddiemac.com/app/guide/content/a_id/1000653
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Fannie Mae Bonus and OT
20Reviewing & Calculating Income from Miscellaneous Sources
https://www.fanniemae.com/content/guide/selling/b3/3.1/03.html
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Fannie Mae Bonus and Overtime
21Reviewing & Calculating Income from Miscellaneous Sources
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Freddie Mac Bonus and OT
22Reviewing & Calculating Income from Miscellaneous Sources
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Freddie Mac’s Loan Product Advisor® -Bonus and OT
23Reviewing & Calculating Income from Miscellaneous Sources
https://guide.freddiemac.com/app/guide/content/a_id/1000653
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Bulletin 2019-20
24Presentation Title Insert Legal Copy
https://guide.freddiemac.com/app/guide/bulletin/2019-20
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Tip Income - Fannie Mae DU
25Reviewing & Calculating Income from Miscellaneous Sources
https://www.fanniemae.com/content/guide/selling/b3/3.1/09.html#Tip.20Income
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Tip Income - Freddie Mac
26
Tip incomeThe Borrower must have a two-year consecutive history of receiving income from tips in order to consider the income for qualifying. For tip income that fluctuates, the Seller must evaluate the income trend and use the amount that is most likely to continue for the next three years
Reviewing & Calculating Income from Miscellaneous Sources
http://www.freddiemac.com/learn/uw/index.html
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Freddie Tip Income
27Reviewing & Calculating Income from Miscellaneous Sources
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Temporary Leave - Fannie Mae
28Reviewing & Calculating Income from Miscellaneous Sources
https://www.fanniemae.com/content/guide/selling/b3/3.1/09.html#Tip.20Income
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Temporary Leave - Fannie Mae
29Reviewing & Calculating Income from Miscellaneous Sources
https://www.fanniemae.com/content/guide/selling/b3/3.1/09.html#Tip.20Income
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Temporary Leave - Fannie Mae
30Reviewing & Calculating Income from Miscellaneous Sources
https://www.fanniemae.com/content/guide/selling/b3/3.1/09.html#Tip.20Income
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Temporary Leave - Freddie Mac
31Reviewing & Calculating Income from Miscellaneous Sources
https://guide.freddiemac.com/app/guide/content/a_id/1000655
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Seasonal Employment and UnemploymentSeasonal employment and unemployment compensationThe Borrower must have a two-year consecutive history of receiving income from seasonal employment and the seasonal employment income must be likely to continue for at least the next three years in order to consider the income for qualifying. Unemployment compensation associated with seasonal employment may be considered qualifying income if the Borrower has a two-year history of receipt and the unemployment compensation is likely to continue for at least the next three years. The Seller must not use seasonal employment income or unemployment compensation to qualify the Borrower unless the income is reported on the Borrower's individual federal income tax returns for the most recent two-year period
32Reviewing & Calculating Income from Miscellaneous Sources
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Tax Return Review for Unemployment2017 Appears on the 1040; 2018 Appears on the Schedule 1 to the 1040
33Reviewing & Calculating Income from Miscellaneous Sources
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Unemployment - Fannie Mae
34Reviewing & Calculating Income from Miscellaneous Sources
https://www.fanniemae.com/content/guide/selling/b3/3.1/09.html#Tip.20Income
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Seasonal Income - Fannie Mae
35Reviewing & Calculating Income from Miscellaneous Sources
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Freddie Mac - Unemployment
36Reviewing & Calculating Income from Miscellaneous Sources
https://guide.freddiemac.com/app/guide/content/a_id/1000652
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Genworth Rate Express®
Presentation Title Insert Legal Copy 37
mi.genworth.com
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Genworth Underwriting Guidelines
Presentation Title Insert Legal Copy 38
mi.genworth.com
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LOS Connections
Presentation Title Insert Legal Copy 39
mi.genworth.com
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Training Tools and Information
Presentation Title Insert Legal Copy 40
mi.genworth.com
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Training Tools and Information
Presentation Title Insert Legal Copy 41
mi.genworth.com
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Additional MI Site Information
Presentation Title Insert Legal Copy 42
mi.genworth.com
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ActionCenter®: 800 444.5664
Your Local Genworth Regional Underwriter
Your Genworth Sales Representative
Your Genworth Resources
Presentation Title Insert Legal Copy 43
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Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials. While we strive foraccuracy, 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.
,GENWORTH EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIEDINCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE RELATED TRAINING. IN NO EVENT SHALL GENWORTH BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER WITH RESPECT TO THE TRAINING AND THE MATERIALS.
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Collateral Underwriter®, Home Ready® and Desktop Underwriter® or DU® are registered trademarks of Fannie MaeLoan Product Advisor®, Home Possible®, Loan Collateral Advisor® and Home Value Explorer® (HVE®) are registered trademarks of Freddie MacActionCenter®, Homebuyer Privileges® and Rate Express® are registered trademarks of Genworth Mortgage Insurance
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