Genworth Mortgage Insurance Corporation copy2018 Genworth Financial Inc All rights reserved

Calculating Income

Presented by Genworth Mortgage InsuranceDecember 2018

AgendaWhat we will coverrlm

ndash General Income Requirementsndash Documentation Requirementsndash Fannie Maendash Freddie Macndash Practice Casesndash Genworth Websitendash Helpful tools

2Calculating Income

We Are Covering Conventional Loans Only In Todayrsquos Session

Letrsquos Take A Quiz True or False W-2 wages are always considered salary income andrlmnever self-employed income for Fannie Mae or Freddie Mac

3Calculating Income

bullTrue or False All income types used for a mortgage for Fannie Mae or Freddie Mac must continue for at least three years

See Fannie Mae Seller Guide or Freddie Mac SellerServicer Guide for more information

Income RequirementsEstablish that income isrlm

ndash Steady Stable or increasingndash Likely to continue into the futurendash Must be able to document the income as per investor guidelines (Are they

reporting it on their tax returns)ndash Income from other Non-Employed Sources such as Child Support Interest

Income or Retirement income might be considered qualifying income but has different qualifying guidelines

ndash Policies change investors have overlays always verify requirements for uncommon or seldom used income types

4Calculating Income

Use Of Declining Income Is A Common Income Calculation Error

Income Document RequirementsDocumentation Requirementsrlm

ndash Manual Underwrite Typically requires two year history to be received and documented

ndash Automated underwriting (Loan Product Advisorreg or Desktop Underwriterreg)bull Typically follow the findings report or feedback certificatebull Often documentation is reduced from a manual underwrite

ndash Additional documentation is required to clarify a question inconsistency of an income source if using to qualify

ndash Conservative income calculations are preferred ndash When MI is needed always verify MI guideline requirements as well

5Calculating Income

Documentation Overlays May Exist Always Check Investor Credit Policy For Additional Requirements

ResourcesTo access the Fannie Mae Seller Guiderlm

ndash Go to httpwwwfanniemaecomndash Click on ldquoSingle Familyrdquo ldquoGuidesrdquo and then ldquoAllregsrdquondash Allregs covers both manual and DU underwriting requirementsndash Chapter B3-3 Income Assessment of the Seller Guide discusses Income

Underwriting requirements

6Calculating Income

bullTo access the Freddie Mac Loan Product Advisor Documentation Matrix and The Freddie Mac SellerServicer Guide

ndash Go to httpwwwfreddiemaccomndash Click on ldquoSingle Familyrdquo ldquo and then ldquoAllregsrdquo which is Freddie Macrsquos

SellerServicer Guide orndash Click on ldquoLearning Centerrdquo then ldquoQuick Referencesrdquo for

ndash Loan Product Advisor Documentation Matrix (Updated September 2018)ndash Chapter 53011 of SellerServicer Guide for Stable monthly income and asset

qualification for Freddie Mac

AgendaWhat we will coverrlm

ndash General Income Requirementsndash Documentation Requirementsndash Fannie Maendash Freddie Macndash Practice Casesndash Genworth Websitendash Helpful tools

2Calculating Income

We Are Covering Conventional Loans Only In Todayrsquos Session

Letrsquos Take A Quiz True or False W-2 wages are always considered salary income andrlmnever self-employed income for Fannie Mae or Freddie Mac

3Calculating Income

bullTrue or False All income types used for a mortgage for Fannie Mae or Freddie Mac must continue for at least three years

See Fannie Mae Seller Guide or Freddie Mac SellerServicer Guide for more information

Income RequirementsEstablish that income isrlm

ndash Steady Stable or increasingndash Likely to continue into the futurendash Must be able to document the income as per investor guidelines (Are they

reporting it on their tax returns)ndash Income from other Non-Employed Sources such as Child Support Interest

Income or Retirement income might be considered qualifying income but has different qualifying guidelines

ndash Policies change investors have overlays always verify requirements for uncommon or seldom used income types

4Calculating Income

Use Of Declining Income Is A Common Income Calculation Error

Income Document RequirementsDocumentation Requirementsrlm

ndash Manual Underwrite Typically requires two year history to be received and documented

ndash Automated underwriting (Loan Product Advisorreg or Desktop Underwriterreg)bull Typically follow the findings report or feedback certificatebull Often documentation is reduced from a manual underwrite

ndash Additional documentation is required to clarify a question inconsistency of an income source if using to qualify

ndash Conservative income calculations are preferred ndash When MI is needed always verify MI guideline requirements as well

5Calculating Income

Documentation Overlays May Exist Always Check Investor Credit Policy For Additional Requirements

ResourcesTo access the Fannie Mae Seller Guiderlm

ndash Go to httpwwwfanniemaecomndash Click on ldquoSingle Familyrdquo ldquoGuidesrdquo and then ldquoAllregsrdquondash Allregs covers both manual and DU underwriting requirementsndash Chapter B3-3 Income Assessment of the Seller Guide discusses Income

Underwriting requirements

6Calculating Income

bullTo access the Freddie Mac Loan Product Advisor Documentation Matrix and The Freddie Mac SellerServicer Guide

ndash Go to httpwwwfreddiemaccomndash Click on ldquoSingle Familyrdquo ldquo and then ldquoAllregsrdquo which is Freddie Macrsquos

SellerServicer Guide orndash Click on ldquoLearning Centerrdquo then ldquoQuick Referencesrdquo for

ndash Loan Product Advisor Documentation Matrix (Updated September 2018)ndash Chapter 53011 of SellerServicer Guide for Stable monthly income and asset

qualification for Freddie Mac

Letrsquos Take A Quiz True or False W-2 wages are always considered salary income andrlmnever self-employed income for Fannie Mae or Freddie Mac

3Calculating Income

bullTrue or False All income types used for a mortgage for Fannie Mae or Freddie Mac must continue for at least three years

See Fannie Mae Seller Guide or Freddie Mac SellerServicer Guide for more information

Income RequirementsEstablish that income isrlm

ndash Steady Stable or increasingndash Likely to continue into the futurendash Must be able to document the income as per investor guidelines (Are they

reporting it on their tax returns)ndash Income from other Non-Employed Sources such as Child Support Interest

Income or Retirement income might be considered qualifying income but has different qualifying guidelines

ndash Policies change investors have overlays always verify requirements for uncommon or seldom used income types

4Calculating Income

Use Of Declining Income Is A Common Income Calculation Error

Income Document RequirementsDocumentation Requirementsrlm

ndash Manual Underwrite Typically requires two year history to be received and documented

ndash Automated underwriting (Loan Product Advisorreg or Desktop Underwriterreg)bull Typically follow the findings report or feedback certificatebull Often documentation is reduced from a manual underwrite

ndash Additional documentation is required to clarify a question inconsistency of an income source if using to qualify

ndash Conservative income calculations are preferred ndash When MI is needed always verify MI guideline requirements as well

5Calculating Income

Documentation Overlays May Exist Always Check Investor Credit Policy For Additional Requirements

ResourcesTo access the Fannie Mae Seller Guiderlm

ndash Go to httpwwwfanniemaecomndash Click on ldquoSingle Familyrdquo ldquoGuidesrdquo and then ldquoAllregsrdquondash Allregs covers both manual and DU underwriting requirementsndash Chapter B3-3 Income Assessment of the Seller Guide discusses Income

Underwriting requirements

6Calculating Income

bullTo access the Freddie Mac Loan Product Advisor Documentation Matrix and The Freddie Mac SellerServicer Guide

ndash Go to httpwwwfreddiemaccomndash Click on ldquoSingle Familyrdquo ldquo and then ldquoAllregsrdquo which is Freddie Macrsquos

SellerServicer Guide orndash Click on ldquoLearning Centerrdquo then ldquoQuick Referencesrdquo for

ndash Loan Product Advisor Documentation Matrix (Updated September 2018)ndash Chapter 53011 of SellerServicer Guide for Stable monthly income and asset

qualification for Freddie Mac

Income RequirementsEstablish that income isrlm

ndash Steady Stable or increasingndash Likely to continue into the futurendash Must be able to document the income as per investor guidelines (Are they

reporting it on their tax returns)ndash Income from other Non-Employed Sources such as Child Support Interest

Income or Retirement income might be considered qualifying income but has different qualifying guidelines

ndash Policies change investors have overlays always verify requirements for uncommon or seldom used income types

4Calculating Income

Use Of Declining Income Is A Common Income Calculation Error

Income Document RequirementsDocumentation Requirementsrlm

ndash Manual Underwrite Typically requires two year history to be received and documented

ndash Automated underwriting (Loan Product Advisorreg or Desktop Underwriterreg)bull Typically follow the findings report or feedback certificatebull Often documentation is reduced from a manual underwrite

ndash Additional documentation is required to clarify a question inconsistency of an income source if using to qualify

ndash Conservative income calculations are preferred ndash When MI is needed always verify MI guideline requirements as well

5Calculating Income

Documentation Overlays May Exist Always Check Investor Credit Policy For Additional Requirements

ResourcesTo access the Fannie Mae Seller Guiderlm

ndash Go to httpwwwfanniemaecomndash Click on ldquoSingle Familyrdquo ldquoGuidesrdquo and then ldquoAllregsrdquondash Allregs covers both manual and DU underwriting requirementsndash Chapter B3-3 Income Assessment of the Seller Guide discusses Income

Underwriting requirements

6Calculating Income

bullTo access the Freddie Mac Loan Product Advisor Documentation Matrix and The Freddie Mac SellerServicer Guide

ndash Go to httpwwwfreddiemaccomndash Click on ldquoSingle Familyrdquo ldquo and then ldquoAllregsrdquo which is Freddie Macrsquos

SellerServicer Guide orndash Click on ldquoLearning Centerrdquo then ldquoQuick Referencesrdquo for

ndash Loan Product Advisor Documentation Matrix (Updated September 2018)ndash Chapter 53011 of SellerServicer Guide for Stable monthly income and asset

qualification for Freddie Mac

Income Document RequirementsDocumentation Requirementsrlm

ndash Manual Underwrite Typically requires two year history to be received and documented

ndash Automated underwriting (Loan Product Advisorreg or Desktop Underwriterreg)bull Typically follow the findings report or feedback certificatebull Often documentation is reduced from a manual underwrite

ndash Additional documentation is required to clarify a question inconsistency of an income source if using to qualify

ndash Conservative income calculations are preferred ndash When MI is needed always verify MI guideline requirements as well

5Calculating Income

Documentation Overlays May Exist Always Check Investor Credit Policy For Additional Requirements

ResourcesTo access the Fannie Mae Seller Guiderlm

ndash Go to httpwwwfanniemaecomndash Click on ldquoSingle Familyrdquo ldquoGuidesrdquo and then ldquoAllregsrdquondash Allregs covers both manual and DU underwriting requirementsndash Chapter B3-3 Income Assessment of the Seller Guide discusses Income

Underwriting requirements

6Calculating Income

bullTo access the Freddie Mac Loan Product Advisor Documentation Matrix and The Freddie Mac SellerServicer Guide

ndash Go to httpwwwfreddiemaccomndash Click on ldquoSingle Familyrdquo ldquo and then ldquoAllregsrdquo which is Freddie Macrsquos

SellerServicer Guide orndash Click on ldquoLearning Centerrdquo then ldquoQuick Referencesrdquo for

ndash Loan Product Advisor Documentation Matrix (Updated September 2018)ndash Chapter 53011 of SellerServicer Guide for Stable monthly income and asset

qualification for Freddie Mac

ResourcesTo access the Fannie Mae Seller Guiderlm

ndash Go to httpwwwfanniemaecomndash Click on ldquoSingle Familyrdquo ldquoGuidesrdquo and then ldquoAllregsrdquondash Allregs covers both manual and DU underwriting requirementsndash Chapter B3-3 Income Assessment of the Seller Guide discusses Income

Underwriting requirements

6Calculating Income

bullTo access the Freddie Mac Loan Product Advisor Documentation Matrix and The Freddie Mac SellerServicer Guide

ndash Go to httpwwwfreddiemaccomndash Click on ldquoSingle Familyrdquo ldquo and then ldquoAllregsrdquo which is Freddie Macrsquos

SellerServicer Guide orndash Click on ldquoLearning Centerrdquo then ldquoQuick Referencesrdquo for

ndash Loan Product Advisor Documentation Matrix (Updated September 2018)ndash Chapter 53011 of SellerServicer Guide for Stable monthly income and asset

qualification for Freddie Mac

Documenting Employment and Income

7Calculating Income

Two Year History is Required on the 1003 for all applicants

For Freddie Mac Gaps Greater Than 30 Days Should Be Addressed By The Applicant

Documenting Employment and Income

8Calculating Income

Break Out Income Type For Proper AUS Results

IRS Form 4506-t

9Calculating Income

wwwirsgov

IRS Form 4506-t

10

wwwirsgov

Calculating Income

rlm The IRS Form 4506-Tndash IRS document used to retrieve past federal tax return transcripts 1065 1120S

1120 or W-2 and 1099 transcripts that are on file with the IRSndash Gives permission for a third party to retrieve the tax payerrsquos datandash Each applicant must sign a separate form regardless of the income source ndash The form is valid for 120 days once signedndash If the form is executed prior to closing it must be used to validate the income

documentation provided by the borrower and used in the underwriting processrlm When Completing A Blank 4506-t Form Lenders Must

ndash Fill in the recipient of the tax documents ndash either its name or the name of the servicer if servicing will be transferred within 120 days of the taxpayer signing the form

ndash Indicate that the request is for documentation concerning the year or years for which the borrowerrsquos income was or will be used in underwriting the loan

ndash Date the form with the date on which the borrower signs the form (or ascertain that date the borrower signed)

Fannie Mae Guidelines rlm 4506-t Must Be signed Once During The Application Process

ndash The timing is at the lenderrsquos discretion but it must be signed on or before the closing of the mortgage loan

ndash The Lender must document the requirement to obtain an executed IRS Form 4506-T with the IRS in their written quality control (QC) plan

ndash The borrower may need to complete multiple forms for different types of returns

Calculating Income 11

Freddie Macrsquos Documentation Matrix

Calculating Income 12

13

Fannie MaeUpdates Policies and Fannie Maersquos Form 1084rlm

Calculating Income

Fannie Mae Selling Guide Self-Employment

14Calculating Income

Fannie Mae Updates 2018-09rlm Updates to self employed

policy

15Calculating Income

Fannie Mae Selling Guide

16Calculating Income

Fannie Mae Selling Guide

17Calculating Income

See B3-31-01 General Income Information (12042018)

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Documenting Employment and Income

8Calculating Income

Break Out Income Type For Proper AUS Results

IRS Form 4506-t

9Calculating Income

wwwirsgov

IRS Form 4506-t

10

wwwirsgov

Calculating Income

rlm The IRS Form 4506-Tndash IRS document used to retrieve past federal tax return transcripts 1065 1120S

1120 or W-2 and 1099 transcripts that are on file with the IRSndash Gives permission for a third party to retrieve the tax payerrsquos datandash Each applicant must sign a separate form regardless of the income source ndash The form is valid for 120 days once signedndash If the form is executed prior to closing it must be used to validate the income

documentation provided by the borrower and used in the underwriting processrlm When Completing A Blank 4506-t Form Lenders Must

ndash Fill in the recipient of the tax documents ndash either its name or the name of the servicer if servicing will be transferred within 120 days of the taxpayer signing the form

ndash Indicate that the request is for documentation concerning the year or years for which the borrowerrsquos income was or will be used in underwriting the loan

ndash Date the form with the date on which the borrower signs the form (or ascertain that date the borrower signed)

Fannie Mae Guidelines rlm 4506-t Must Be signed Once During The Application Process

ndash The timing is at the lenderrsquos discretion but it must be signed on or before the closing of the mortgage loan

ndash The Lender must document the requirement to obtain an executed IRS Form 4506-T with the IRS in their written quality control (QC) plan

ndash The borrower may need to complete multiple forms for different types of returns

Calculating Income 11

Freddie Macrsquos Documentation Matrix

Calculating Income 12

13

Fannie MaeUpdates Policies and Fannie Maersquos Form 1084rlm

Calculating Income

Fannie Mae Selling Guide Self-Employment

14Calculating Income

Fannie Mae Updates 2018-09rlm Updates to self employed

policy

15Calculating Income

Fannie Mae Selling Guide

16Calculating Income

Fannie Mae Selling Guide

17Calculating Income

See B3-31-01 General Income Information (12042018)

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

IRS Form 4506-t

9Calculating Income

wwwirsgov

IRS Form 4506-t

10

wwwirsgov

Calculating Income

rlm The IRS Form 4506-Tndash IRS document used to retrieve past federal tax return transcripts 1065 1120S

1120 or W-2 and 1099 transcripts that are on file with the IRSndash Gives permission for a third party to retrieve the tax payerrsquos datandash Each applicant must sign a separate form regardless of the income source ndash The form is valid for 120 days once signedndash If the form is executed prior to closing it must be used to validate the income

documentation provided by the borrower and used in the underwriting processrlm When Completing A Blank 4506-t Form Lenders Must

ndash Fill in the recipient of the tax documents ndash either its name or the name of the servicer if servicing will be transferred within 120 days of the taxpayer signing the form

ndash Indicate that the request is for documentation concerning the year or years for which the borrowerrsquos income was or will be used in underwriting the loan

ndash Date the form with the date on which the borrower signs the form (or ascertain that date the borrower signed)

Fannie Mae Guidelines rlm 4506-t Must Be signed Once During The Application Process

ndash The timing is at the lenderrsquos discretion but it must be signed on or before the closing of the mortgage loan

ndash The Lender must document the requirement to obtain an executed IRS Form 4506-T with the IRS in their written quality control (QC) plan

ndash The borrower may need to complete multiple forms for different types of returns

Calculating Income 11

Freddie Macrsquos Documentation Matrix

Calculating Income 12

13

Fannie MaeUpdates Policies and Fannie Maersquos Form 1084rlm

Calculating Income

Fannie Mae Selling Guide Self-Employment

14Calculating Income

Fannie Mae Updates 2018-09rlm Updates to self employed

policy

15Calculating Income

Fannie Mae Selling Guide

16Calculating Income

Fannie Mae Selling Guide

17Calculating Income

See B3-31-01 General Income Information (12042018)

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

IRS Form 4506-t

10

wwwirsgov

Calculating Income

rlm The IRS Form 4506-Tndash IRS document used to retrieve past federal tax return transcripts 1065 1120S

1120 or W-2 and 1099 transcripts that are on file with the IRSndash Gives permission for a third party to retrieve the tax payerrsquos datandash Each applicant must sign a separate form regardless of the income source ndash The form is valid for 120 days once signedndash If the form is executed prior to closing it must be used to validate the income

documentation provided by the borrower and used in the underwriting processrlm When Completing A Blank 4506-t Form Lenders Must

ndash Fill in the recipient of the tax documents ndash either its name or the name of the servicer if servicing will be transferred within 120 days of the taxpayer signing the form

ndash Indicate that the request is for documentation concerning the year or years for which the borrowerrsquos income was or will be used in underwriting the loan

ndash Date the form with the date on which the borrower signs the form (or ascertain that date the borrower signed)

Fannie Mae Guidelines rlm 4506-t Must Be signed Once During The Application Process

ndash The timing is at the lenderrsquos discretion but it must be signed on or before the closing of the mortgage loan

ndash The Lender must document the requirement to obtain an executed IRS Form 4506-T with the IRS in their written quality control (QC) plan

ndash The borrower may need to complete multiple forms for different types of returns

Calculating Income 11

Freddie Macrsquos Documentation Matrix

Calculating Income 12

13

Fannie MaeUpdates Policies and Fannie Maersquos Form 1084rlm

Calculating Income

Fannie Mae Selling Guide Self-Employment

14Calculating Income

Fannie Mae Updates 2018-09rlm Updates to self employed

policy

15Calculating Income

Fannie Mae Selling Guide

16Calculating Income

Fannie Mae Selling Guide

17Calculating Income

See B3-31-01 General Income Information (12042018)

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Fannie Mae Guidelines rlm 4506-t Must Be signed Once During The Application Process

ndash The timing is at the lenderrsquos discretion but it must be signed on or before the closing of the mortgage loan

ndash The Lender must document the requirement to obtain an executed IRS Form 4506-T with the IRS in their written quality control (QC) plan

ndash The borrower may need to complete multiple forms for different types of returns

Calculating Income 11

Freddie Macrsquos Documentation Matrix

Calculating Income 12

13

Fannie MaeUpdates Policies and Fannie Maersquos Form 1084rlm

Calculating Income

Fannie Mae Selling Guide Self-Employment

14Calculating Income

Fannie Mae Updates 2018-09rlm Updates to self employed

policy

15Calculating Income

Fannie Mae Selling Guide

16Calculating Income

Fannie Mae Selling Guide

17Calculating Income

See B3-31-01 General Income Information (12042018)

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Freddie Macrsquos Documentation Matrix

Calculating Income 12

13

Fannie MaeUpdates Policies and Fannie Maersquos Form 1084rlm

Calculating Income

Fannie Mae Selling Guide Self-Employment

14Calculating Income

Fannie Mae Updates 2018-09rlm Updates to self employed

policy

15Calculating Income

Fannie Mae Selling Guide

16Calculating Income

Fannie Mae Selling Guide

17Calculating Income

See B3-31-01 General Income Information (12042018)

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

13

Fannie MaeUpdates Policies and Fannie Maersquos Form 1084rlm

Calculating Income

Fannie Mae Selling Guide Self-Employment

14Calculating Income

Fannie Mae Updates 2018-09rlm Updates to self employed

policy

15Calculating Income

Fannie Mae Selling Guide

16Calculating Income

Fannie Mae Selling Guide

17Calculating Income

See B3-31-01 General Income Information (12042018)

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Fannie Mae Selling Guide Self-Employment

14Calculating Income

Fannie Mae Updates 2018-09rlm Updates to self employed

policy

15Calculating Income

Fannie Mae Selling Guide

16Calculating Income

Fannie Mae Selling Guide

17Calculating Income

See B3-31-01 General Income Information (12042018)

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Fannie Mae Updates 2018-09rlm Updates to self employed

policy

15Calculating Income

Fannie Mae Selling Guide

16Calculating Income

Fannie Mae Selling Guide

17Calculating Income

See B3-31-01 General Income Information (12042018)

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Fannie Mae Selling Guide

16Calculating Income

Fannie Mae Selling Guide

17Calculating Income

See B3-31-01 General Income Information (12042018)

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Fannie Mae Selling Guide

17Calculating Income

See B3-31-01 General Income Information (12042018)

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Fannie Mae Selling Guide rlm Trends of Income

ndash Verify trends of income before using to qualify for a mortgagendash Income used must be likely to continue

18Calculating Income

See B3-31-01 General Income Information (12042018)

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Commission Income and 2106 Expensesrlm Updated Policy For Commission Income amp 2106 Expenses

ndash No longer required to obtain tax returns for commission incomendash Automobile allowance change

19Calculating Income

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

20

See B3-31-04 Commission Income Requirements (12042018)

Calculating Income

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

21Calculating Income

Documentation Fannie Mae Selling Guide

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

22Calculating Income

See B3-31-03 Base Pay (Salary or Hourly) Bonus and Overtime Income (05152012)

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Highlightsrlmndash Core principles of prudent underwriting must be followed when considering

income for qualifying purposesbull Source amount history of receipt and likelihood of continued receipt

ndash Income that does not have a defined expiration date (long term disability interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance

ndash Income that DOES have an expiration date lenders must document a three-year continuance (see Fannie Mae Seller Guide)

23Calculating Income

Fannie Mae Selling Guide

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Fannie Mae Selling GuideContinuance of Incomerlm

24Calculating Income

See B3-31-01 General Income Information (12042018)

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

25Calculating Income

Documentation Fannie Mae Selling Guide

Verbal Verificationsrlmndash Verbal verifications of employment for employed borrowers are required to be

completed within 10 business days of closing or if lenders choose a VVOE can be completed prior to loan delivery

ndash Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

26Calculating Income

Fannie Mae ldquoOptionalrdquo VOE fields

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

27Calculating Income

Fannie Mae Selling Guide

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Fannie Mae Job AidsFAQs

28Calculating Income

httpswwwfanniemaecomsinglefamilyoriginating-underwriting-training

Fannie Mae Underwriting FAQsrlm Answers Common Lender Income

Questionsndash httpswwwfanniemaecomsinglefamilyorigin

ating-underwriting-training

29Calculating Income

Fannie Mae Underwriting FAQsrlm Answers Common Lender

Income Questionsndash httpswwwfanniemaecomsinglefamily

originating-underwriting-training

30Calculating Income

31

Freddie Mac Bulletins Documentation and Rental Income Matrix and Freddie MacrlmForm 91

Calculating Income

Bulletin 2016-19-Income Changes

32Calculating Income

Effective Loans With Settlement Dates On Or After July 6 2017

Bulletin 2018-08

33Calculating Income

rlm Income Reminders

General Requirements For Freddie Mac

34Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac SellerServicer Guide

35Calculating Income

Chapter 53011 General requirements for all stable monthly income

Income Continuance Charts Added To The Freddie Mac SellerServicer Guide

Income Continuance Requirements

36Calculating Income

Freddie Mac Primary Base and Secondary Employment

37Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

38Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

39Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Commission Income

40Calculating Income

Freddie Mac Documentation Matrixrlm Documentation Matrix

ndash Assists in underwriting and documenting loans for Freddie Mac

ndash Lenders may have overlays ndash Check specific program

requirementsndash Updated September 2018

41Calculating Income

httpfreddiemaccomlearn

Bulletin 2016-19-Income Changes

32Calculating Income

Effective Loans With Settlement Dates On Or After July 6 2017

Bulletin 2018-08

33Calculating Income

rlm Income Reminders

General Requirements For Freddie Mac

34Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac SellerServicer Guide

35Calculating Income

Chapter 53011 General requirements for all stable monthly income

Income Continuance Charts Added To The Freddie Mac SellerServicer Guide

Income Continuance Requirements

36Calculating Income

Freddie Mac Primary Base and Secondary Employment

37Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

38Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

39Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Commission Income

40Calculating Income

Freddie Mac Documentation Matrixrlm Documentation Matrix

ndash Assists in underwriting and documenting loans for Freddie Mac

ndash Lenders may have overlays ndash Check specific program

requirementsndash Updated September 2018

41Calculating Income

httpfreddiemaccomlearn

Bulletin 2018-08

33Calculating Income

rlm Income Reminders

General Requirements For Freddie Mac

34Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac SellerServicer Guide

35Calculating Income

Chapter 53011 General requirements for all stable monthly income

Income Continuance Charts Added To The Freddie Mac SellerServicer Guide

Income Continuance Requirements

36Calculating Income

Freddie Mac Primary Base and Secondary Employment

37Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

38Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

39Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Commission Income

40Calculating Income

Freddie Mac Documentation Matrixrlm Documentation Matrix

ndash Assists in underwriting and documenting loans for Freddie Mac

ndash Lenders may have overlays ndash Check specific program

requirementsndash Updated September 2018

41Calculating Income

httpfreddiemaccomlearn

General Requirements For Freddie Mac

34Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac SellerServicer Guide

35Calculating Income

Chapter 53011 General requirements for all stable monthly income

Income Continuance Charts Added To The Freddie Mac SellerServicer Guide

Income Continuance Requirements

36Calculating Income

Freddie Mac Primary Base and Secondary Employment

37Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

38Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

39Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Commission Income

40Calculating Income

Freddie Mac Documentation Matrixrlm Documentation Matrix

ndash Assists in underwriting and documenting loans for Freddie Mac

ndash Lenders may have overlays ndash Check specific program

requirementsndash Updated September 2018

41Calculating Income

httpfreddiemaccomlearn

Freddie Mac SellerServicer Guide

35Calculating Income

Chapter 53011 General requirements for all stable monthly income

Income Continuance Charts Added To The Freddie Mac SellerServicer Guide

Income Continuance Requirements

36Calculating Income

Freddie Mac Primary Base and Secondary Employment

37Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

38Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

39Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Commission Income

40Calculating Income

Freddie Mac Documentation Matrixrlm Documentation Matrix

ndash Assists in underwriting and documenting loans for Freddie Mac

ndash Lenders may have overlays ndash Check specific program

requirementsndash Updated September 2018

41Calculating Income

httpfreddiemaccomlearn

Income Continuance Requirements

36Calculating Income

Freddie Mac Primary Base and Secondary Employment

37Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

38Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

39Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Commission Income

40Calculating Income

Freddie Mac Documentation Matrixrlm Documentation Matrix

ndash Assists in underwriting and documenting loans for Freddie Mac

ndash Lenders may have overlays ndash Check specific program

requirementsndash Updated September 2018

41Calculating Income

httpfreddiemaccomlearn

Freddie Mac Primary Base and Secondary Employment

37Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

38Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

39Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Commission Income

40Calculating Income

Freddie Mac Documentation Matrixrlm Documentation Matrix

ndash Assists in underwriting and documenting loans for Freddie Mac

ndash Lenders may have overlays ndash Check specific program

requirementsndash Updated September 2018

41Calculating Income

httpfreddiemaccomlearn

Freddie Mac Primary Base and Secondary Employment

38Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Primary Base and Secondary Employment

39Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Commission Income

40Calculating Income

Freddie Mac Documentation Matrixrlm Documentation Matrix

ndash Assists in underwriting and documenting loans for Freddie Mac

ndash Lenders may have overlays ndash Check specific program

requirementsndash Updated September 2018

41Calculating Income

httpfreddiemaccomlearn

Freddie Mac Primary Base and Secondary Employment

39Calculating Income

Updated Freddie Mac Income Guidelines Everything In Green Is Updated Verbiage In The SellerServicer Guide

Freddie Mac Commission Income

40Calculating Income

Freddie Mac Documentation Matrixrlm Documentation Matrix

ndash Assists in underwriting and documenting loans for Freddie Mac

ndash Lenders may have overlays ndash Check specific program

requirementsndash Updated September 2018

41Calculating Income

httpfreddiemaccomlearn

Freddie Mac Commission Income

40Calculating Income

Freddie Mac Documentation Matrixrlm Documentation Matrix

ndash Assists in underwriting and documenting loans for Freddie Mac

ndash Lenders may have overlays ndash Check specific program

requirementsndash Updated September 2018

41Calculating Income

httpfreddiemaccomlearn

Freddie Mac Documentation Matrixrlm Documentation Matrix

ndash Assists in underwriting and documenting loans for Freddie Mac

ndash Lenders may have overlays ndash Check specific program

requirementsndash Updated September 2018

41Calculating Income

httpfreddiemaccomlearn

42Calculating Income

Freddie Mac Monthly Income

43Calculating Income

Income Documentation Requirements

44Calculating Income

Freddie Mac Income Documentation

Freddie Mac Form 91 Freddie Mac Income Calculation Form 91 Updated August 2017rlm

ndash Sellers are required to analyze self employed borrowers using Freddie Mac Form 91 or a similar form

bull Updates include removal of Rental income 2106 expenses 4797 and 6252 ndash The form should be maintained in the loan filendash Form can be used for ldquoother types of non-self employed income such as

commissioned income and capital gain incomendash Borrowers that have 25 or more ownership in a business are considered self

employed for Freddie Mac qualifying purposesndash Tax returns may be required for additional scenarios such as

bull Applicants working for family membersbull Working for the property sellerbull Commission income of 25 or morebull Rental or Farm Income

45Calculating Income

46Calculating Income

Freddie Mac Self-Employed Documentation

47Calculating Income

Freddie Mac Self-Employed Documentation

Updates For Freddie Mac 2017-12

48Calculating Income

rlm Effective for loans with settlement dates on or after February 9 2018 Sellers may implement immediately

ndash Short-term and long-term rental income sources for refinance transactions

ndash Updates policy for rental properties NOT owned in the prior calendar year

ndash Reintroduces Guide Form 1000 and retires Operating Income Form 998

ndash Expanding requirements additional specificity and guidance for

bull Accessory unitsbull Leasesbull Net rental income calculationsbull Establishment of DTI ratiosbull Rental Income from form 8825

ndash New Rental Form 92ndash Revised Form 91 (Income Calculations)

March 1 2019

What Guidelines Do We Followrlm Sellers may originate underwrite

and deliver Mortgages based either on the rental income requirements

ndash In effect prior to Bulletin 2017-12 in their entirety

ndash The revised rental income requirements announced in Bulletin 2017-12 in their entirety (and for which the effective date was extended in Bulletins 2018-1 and 2018-13) or

ndash The revised rental income requirements in the March 1 2019 version of Guide Section 53061 in their entirety

Calculating Income 49

50Calculating Income

httpwwwfreddiemaccomsinglefamilyformssellpdf91pdf

43Calculating Income

Income Documentation Requirements

44Calculating Income

Freddie Mac Income Documentation

Freddie Mac Form 91 Freddie Mac Income Calculation Form 91 Updated August 2017rlm

ndash Sellers are required to analyze self employed borrowers using Freddie Mac Form 91 or a similar form

bull Updates include removal of Rental income 2106 expenses 4797 and 6252 ndash The form should be maintained in the loan filendash Form can be used for ldquoother types of non-self employed income such as

commissioned income and capital gain incomendash Borrowers that have 25 or more ownership in a business are considered self

employed for Freddie Mac qualifying purposesndash Tax returns may be required for additional scenarios such as

bull Applicants working for family membersbull Working for the property sellerbull Commission income of 25 or morebull Rental or Farm Income

45Calculating Income

46Calculating Income

Freddie Mac Self-Employed Documentation

47Calculating Income

Freddie Mac Self-Employed Documentation

Updates For Freddie Mac 2017-12

48Calculating Income

rlm Effective for loans with settlement dates on or after February 9 2018 Sellers may implement immediately

ndash Short-term and long-term rental income sources for refinance transactions

ndash Updates policy for rental properties NOT owned in the prior calendar year

ndash Reintroduces Guide Form 1000 and retires Operating Income Form 998

ndash Expanding requirements additional specificity and guidance for

bull Accessory unitsbull Leasesbull Net rental income calculationsbull Establishment of DTI ratiosbull Rental Income from form 8825

ndash New Rental Form 92ndash Revised Form 91 (Income Calculations)

March 1 2019

What Guidelines Do We Followrlm Sellers may originate underwrite

and deliver Mortgages based either on the rental income requirements

ndash In effect prior to Bulletin 2017-12 in their entirety

ndash The revised rental income requirements announced in Bulletin 2017-12 in their entirety (and for which the effective date was extended in Bulletins 2018-1 and 2018-13) or

ndash The revised rental income requirements in the March 1 2019 version of Guide Section 53061 in their entirety

Calculating Income 49

50Calculating Income

httpwwwfreddiemaccomsinglefamilyformssellpdf91pdf

44Calculating Income

Freddie Mac Income Documentation

Freddie Mac Form 91 Freddie Mac Income Calculation Form 91 Updated August 2017rlm

ndash Sellers are required to analyze self employed borrowers using Freddie Mac Form 91 or a similar form

bull Updates include removal of Rental income 2106 expenses 4797 and 6252 ndash The form should be maintained in the loan filendash Form can be used for ldquoother types of non-self employed income such as

commissioned income and capital gain incomendash Borrowers that have 25 or more ownership in a business are considered self

employed for Freddie Mac qualifying purposesndash Tax returns may be required for additional scenarios such as

bull Applicants working for family membersbull Working for the property sellerbull Commission income of 25 or morebull Rental or Farm Income

45Calculating Income

46Calculating Income

Freddie Mac Self-Employed Documentation

47Calculating Income

Freddie Mac Self-Employed Documentation

Updates For Freddie Mac 2017-12

48Calculating Income

rlm Effective for loans with settlement dates on or after February 9 2018 Sellers may implement immediately

ndash Short-term and long-term rental income sources for refinance transactions

ndash Updates policy for rental properties NOT owned in the prior calendar year

ndash Reintroduces Guide Form 1000 and retires Operating Income Form 998

ndash Expanding requirements additional specificity and guidance for

bull Accessory unitsbull Leasesbull Net rental income calculationsbull Establishment of DTI ratiosbull Rental Income from form 8825

ndash New Rental Form 92ndash Revised Form 91 (Income Calculations)

March 1 2019

What Guidelines Do We Followrlm Sellers may originate underwrite

and deliver Mortgages based either on the rental income requirements

ndash In effect prior to Bulletin 2017-12 in their entirety

ndash The revised rental income requirements announced in Bulletin 2017-12 in their entirety (and for which the effective date was extended in Bulletins 2018-1 and 2018-13) or

ndash The revised rental income requirements in the March 1 2019 version of Guide Section 53061 in their entirety

Calculating Income 49

50Calculating Income

httpwwwfreddiemaccomsinglefamilyformssellpdf91pdf

Freddie Mac Form 91 Freddie Mac Income Calculation Form 91 Updated August 2017rlm

ndash Sellers are required to analyze self employed borrowers using Freddie Mac Form 91 or a similar form

bull Updates include removal of Rental income 2106 expenses 4797 and 6252 ndash The form should be maintained in the loan filendash Form can be used for ldquoother types of non-self employed income such as

commissioned income and capital gain incomendash Borrowers that have 25 or more ownership in a business are considered self

employed for Freddie Mac qualifying purposesndash Tax returns may be required for additional scenarios such as

bull Applicants working for family membersbull Working for the property sellerbull Commission income of 25 or morebull Rental or Farm Income

45Calculating Income

46Calculating Income

Freddie Mac Self-Employed Documentation

47Calculating Income

Freddie Mac Self-Employed Documentation

Updates For Freddie Mac 2017-12

48Calculating Income

rlm Effective for loans with settlement dates on or after February 9 2018 Sellers may implement immediately

ndash Short-term and long-term rental income sources for refinance transactions

ndash Updates policy for rental properties NOT owned in the prior calendar year

ndash Reintroduces Guide Form 1000 and retires Operating Income Form 998

ndash Expanding requirements additional specificity and guidance for

bull Accessory unitsbull Leasesbull Net rental income calculationsbull Establishment of DTI ratiosbull Rental Income from form 8825

ndash New Rental Form 92ndash Revised Form 91 (Income Calculations)

March 1 2019

What Guidelines Do We Followrlm Sellers may originate underwrite

and deliver Mortgages based either on the rental income requirements

ndash In effect prior to Bulletin 2017-12 in their entirety

ndash The revised rental income requirements announced in Bulletin 2017-12 in their entirety (and for which the effective date was extended in Bulletins 2018-1 and 2018-13) or

ndash The revised rental income requirements in the March 1 2019 version of Guide Section 53061 in their entirety

Calculating Income 49

50Calculating Income

httpwwwfreddiemaccomsinglefamilyformssellpdf91pdf

46Calculating Income

Freddie Mac Self-Employed Documentation

47Calculating Income

Freddie Mac Self-Employed Documentation

Updates For Freddie Mac 2017-12

48Calculating Income

rlm Effective for loans with settlement dates on or after February 9 2018 Sellers may implement immediately

ndash Short-term and long-term rental income sources for refinance transactions

ndash Updates policy for rental properties NOT owned in the prior calendar year

ndash Reintroduces Guide Form 1000 and retires Operating Income Form 998

ndash Expanding requirements additional specificity and guidance for

bull Accessory unitsbull Leasesbull Net rental income calculationsbull Establishment of DTI ratiosbull Rental Income from form 8825

ndash New Rental Form 92ndash Revised Form 91 (Income Calculations)

March 1 2019

What Guidelines Do We Followrlm Sellers may originate underwrite

and deliver Mortgages based either on the rental income requirements

ndash In effect prior to Bulletin 2017-12 in their entirety

ndash The revised rental income requirements announced in Bulletin 2017-12 in their entirety (and for which the effective date was extended in Bulletins 2018-1 and 2018-13) or

ndash The revised rental income requirements in the March 1 2019 version of Guide Section 53061 in their entirety

Calculating Income 49

50Calculating Income

httpwwwfreddiemaccomsinglefamilyformssellpdf91pdf

47Calculating Income

Freddie Mac Self-Employed Documentation

Updates For Freddie Mac 2017-12

48Calculating Income

rlm Effective for loans with settlement dates on or after February 9 2018 Sellers may implement immediately

ndash Short-term and long-term rental income sources for refinance transactions

ndash Updates policy for rental properties NOT owned in the prior calendar year

ndash Reintroduces Guide Form 1000 and retires Operating Income Form 998

ndash Expanding requirements additional specificity and guidance for

bull Accessory unitsbull Leasesbull Net rental income calculationsbull Establishment of DTI ratiosbull Rental Income from form 8825

ndash New Rental Form 92ndash Revised Form 91 (Income Calculations)

March 1 2019

What Guidelines Do We Followrlm Sellers may originate underwrite

and deliver Mortgages based either on the rental income requirements

ndash In effect prior to Bulletin 2017-12 in their entirety

ndash The revised rental income requirements announced in Bulletin 2017-12 in their entirety (and for which the effective date was extended in Bulletins 2018-1 and 2018-13) or

ndash The revised rental income requirements in the March 1 2019 version of Guide Section 53061 in their entirety

Calculating Income 49

50Calculating Income

httpwwwfreddiemaccomsinglefamilyformssellpdf91pdf

Updates For Freddie Mac 2017-12

48Calculating Income

rlm Effective for loans with settlement dates on or after February 9 2018 Sellers may implement immediately

ndash Short-term and long-term rental income sources for refinance transactions

ndash Updates policy for rental properties NOT owned in the prior calendar year

ndash Reintroduces Guide Form 1000 and retires Operating Income Form 998

ndash Expanding requirements additional specificity and guidance for

bull Accessory unitsbull Leasesbull Net rental income calculationsbull Establishment of DTI ratiosbull Rental Income from form 8825

ndash New Rental Form 92ndash Revised Form 91 (Income Calculations)

March 1 2019

What Guidelines Do We Followrlm Sellers may originate underwrite

and deliver Mortgages based either on the rental income requirements

ndash In effect prior to Bulletin 2017-12 in their entirety

ndash The revised rental income requirements announced in Bulletin 2017-12 in their entirety (and for which the effective date was extended in Bulletins 2018-1 and 2018-13) or

ndash The revised rental income requirements in the March 1 2019 version of Guide Section 53061 in their entirety

Calculating Income 49

50Calculating Income

httpwwwfreddiemaccomsinglefamilyformssellpdf91pdf

What Guidelines Do We Followrlm Sellers may originate underwrite

and deliver Mortgages based either on the rental income requirements

ndash In effect prior to Bulletin 2017-12 in their entirety

ndash The revised rental income requirements announced in Bulletin 2017-12 in their entirety (and for which the effective date was extended in Bulletins 2018-1 and 2018-13) or

ndash The revised rental income requirements in the March 1 2019 version of Guide Section 53061 in their entirety

Calculating Income 49

50Calculating Income

httpwwwfreddiemaccomsinglefamilyformssellpdf91pdf

50Calculating Income

httpwwwfreddiemaccomsinglefamilyformssellpdf91pdf

Freddie Mac Form 92

51Calculating Income

Available Now

Freddie Mac Form 92

Genworth MI Form 92 Rental Income Calculator newmigenworthcomself-employed-borrower-calculators

Calculating Income 52

Updates For Freddie Mac 2017-20

53Calculating Income

rlm Effective Immediatelyndash Allowing use of Restricted Stock and

Restricted stock units in certain casesndash Expanding ldquoAssets as basis for Mortgage

Qualificationrdquobull Changing name to Assets as a basis for

repayment of obligationsbull Adding depository accounts and securities as

assets available to be used (not just retirement accounts)

ndash One borrower must be 62 years of agendash Borrower must be the sole owner of the asset (or if

jointly owned both must be on the mortgage transaction)

ndash No withdrawal penaltyndash Document source of funds for any deposit

exceeding 10 of the borrowerrsquos total eligible assets verify the deposit does not include gifts or borrowed funds or reduce assets used to qualify

See Freddie Mac SellerServicer Guide For Complete Details

54

Document Review Pay Stubs W-2s Written VOEsrlm

Calculating Income

Income Conversion Exercises

55Calculating Income

Calculate the monthly income for each pay scenario above

$60000$750

$1000

$1250$20 hour 40 hours weekly

56Calculating Income

Remindersndash The borrowerrsquos name and SSN must be consistent with the application

(Spelling middle initial or a JR or III)ndash Computer generatedndash If paid hourly the number of hours must be noted on the paystubndash Dated within 30 days of application If stale dated ask applicant for more recent

stubndash YTD income must be provided and should be consistent with monthly incomendash Note any commission overtime or bonus income-donrsquot use if you donrsquot needndash Review for possible liabilities that may need to be included in your debt ratio

(child support or alimony or IRS garnishment or a new loan take out)ndash If automatically deposited cross reference the income to the bank statementndash We are calculating income but also validating the document does employer

match back to application To the W-2

Pay Stubs

Paystub

57Calculating Income

58Calculating Income

W-2 Remindersrlmndash Name and SSN match application and also the pay stubndash Applicantrsquos address should also match the 1003 and bank statement mailing

addressndash Should be the most recent one or two (if required)ndash Is the ytd income consistent with monthly income if not obtain explanationndash Employer addresses match applicationndash Employer ID must be valid (XX-XXXXXX) is the proper formatndash FICA and Medicare withholding based on wages can be checkedndash You generally should NOT have the Employerrsquos Copy or the Social Security

Administration Copyndash Review the document at application donrsquot just shove in the loan filendash Obtain tax transcripts to support income if needed

Examining W-2s

59Calculating Income

Examining W-2-Any questions on this W-2

60Calculating Income

VOE Remindersrlmndash Independently verify address to which you are sendingndash Do not put ldquoAttention tordquo on the formndash Forms should be signed dated with signature and printed name of employerndash If faxed note the origin of the faxed document-Is it coming from the employerndash Income and work history job title consistent with applicationndash Is bonus or overtime likely to continue Probability of Continued Employmentndash Review for different handwriting styles cross outs white out or cutting and

pastingndash Should it be handwritten Large corporationsndash The VOE cannot be hand carried by the applicant NOR should it be mailed to a

PO Box unless you have verified that that is the employerrsquos protocolndash VOE can be helpful in breaking out income such as commission overtime or

bonusndash Verify document does not expire prior to note date (Typically documents are

valid for four months)

Written Verification of Employment

61Calculating Income

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Freddie Mac Form 92

Genworth MI Form 92 Rental Income Calculator newmigenworthcomself-employed-borrower-calculators

Calculating Income 52

Updates For Freddie Mac 2017-20

53Calculating Income

rlm Effective Immediatelyndash Allowing use of Restricted Stock and

Restricted stock units in certain casesndash Expanding ldquoAssets as basis for Mortgage

Qualificationrdquobull Changing name to Assets as a basis for

repayment of obligationsbull Adding depository accounts and securities as

assets available to be used (not just retirement accounts)

ndash One borrower must be 62 years of agendash Borrower must be the sole owner of the asset (or if

jointly owned both must be on the mortgage transaction)

ndash No withdrawal penaltyndash Document source of funds for any deposit

exceeding 10 of the borrowerrsquos total eligible assets verify the deposit does not include gifts or borrowed funds or reduce assets used to qualify

See Freddie Mac SellerServicer Guide For Complete Details

54

Document Review Pay Stubs W-2s Written VOEsrlm

Calculating Income

Income Conversion Exercises

55Calculating Income

Calculate the monthly income for each pay scenario above

$60000$750

$1000

$1250$20 hour 40 hours weekly

56Calculating Income

Remindersndash The borrowerrsquos name and SSN must be consistent with the application

(Spelling middle initial or a JR or III)ndash Computer generatedndash If paid hourly the number of hours must be noted on the paystubndash Dated within 30 days of application If stale dated ask applicant for more recent

stubndash YTD income must be provided and should be consistent with monthly incomendash Note any commission overtime or bonus income-donrsquot use if you donrsquot needndash Review for possible liabilities that may need to be included in your debt ratio

(child support or alimony or IRS garnishment or a new loan take out)ndash If automatically deposited cross reference the income to the bank statementndash We are calculating income but also validating the document does employer

match back to application To the W-2

Pay Stubs

Paystub

57Calculating Income

58Calculating Income

W-2 Remindersrlmndash Name and SSN match application and also the pay stubndash Applicantrsquos address should also match the 1003 and bank statement mailing

addressndash Should be the most recent one or two (if required)ndash Is the ytd income consistent with monthly income if not obtain explanationndash Employer addresses match applicationndash Employer ID must be valid (XX-XXXXXX) is the proper formatndash FICA and Medicare withholding based on wages can be checkedndash You generally should NOT have the Employerrsquos Copy or the Social Security

Administration Copyndash Review the document at application donrsquot just shove in the loan filendash Obtain tax transcripts to support income if needed

Examining W-2s

59Calculating Income

Examining W-2-Any questions on this W-2

60Calculating Income

VOE Remindersrlmndash Independently verify address to which you are sendingndash Do not put ldquoAttention tordquo on the formndash Forms should be signed dated with signature and printed name of employerndash If faxed note the origin of the faxed document-Is it coming from the employerndash Income and work history job title consistent with applicationndash Is bonus or overtime likely to continue Probability of Continued Employmentndash Review for different handwriting styles cross outs white out or cutting and

pastingndash Should it be handwritten Large corporationsndash The VOE cannot be hand carried by the applicant NOR should it be mailed to a

PO Box unless you have verified that that is the employerrsquos protocolndash VOE can be helpful in breaking out income such as commission overtime or

bonusndash Verify document does not expire prior to note date (Typically documents are

valid for four months)

Written Verification of Employment

61Calculating Income

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Updates For Freddie Mac 2017-20

53Calculating Income

rlm Effective Immediatelyndash Allowing use of Restricted Stock and

Restricted stock units in certain casesndash Expanding ldquoAssets as basis for Mortgage

Qualificationrdquobull Changing name to Assets as a basis for

repayment of obligationsbull Adding depository accounts and securities as

assets available to be used (not just retirement accounts)

ndash One borrower must be 62 years of agendash Borrower must be the sole owner of the asset (or if

jointly owned both must be on the mortgage transaction)

ndash No withdrawal penaltyndash Document source of funds for any deposit

exceeding 10 of the borrowerrsquos total eligible assets verify the deposit does not include gifts or borrowed funds or reduce assets used to qualify

See Freddie Mac SellerServicer Guide For Complete Details

54

Document Review Pay Stubs W-2s Written VOEsrlm

Calculating Income

Income Conversion Exercises

55Calculating Income

Calculate the monthly income for each pay scenario above

$60000$750

$1000

$1250$20 hour 40 hours weekly

56Calculating Income

Remindersndash The borrowerrsquos name and SSN must be consistent with the application

(Spelling middle initial or a JR or III)ndash Computer generatedndash If paid hourly the number of hours must be noted on the paystubndash Dated within 30 days of application If stale dated ask applicant for more recent

stubndash YTD income must be provided and should be consistent with monthly incomendash Note any commission overtime or bonus income-donrsquot use if you donrsquot needndash Review for possible liabilities that may need to be included in your debt ratio

(child support or alimony or IRS garnishment or a new loan take out)ndash If automatically deposited cross reference the income to the bank statementndash We are calculating income but also validating the document does employer

match back to application To the W-2

Pay Stubs

Paystub

57Calculating Income

58Calculating Income

W-2 Remindersrlmndash Name and SSN match application and also the pay stubndash Applicantrsquos address should also match the 1003 and bank statement mailing

addressndash Should be the most recent one or two (if required)ndash Is the ytd income consistent with monthly income if not obtain explanationndash Employer addresses match applicationndash Employer ID must be valid (XX-XXXXXX) is the proper formatndash FICA and Medicare withholding based on wages can be checkedndash You generally should NOT have the Employerrsquos Copy or the Social Security

Administration Copyndash Review the document at application donrsquot just shove in the loan filendash Obtain tax transcripts to support income if needed

Examining W-2s

59Calculating Income

Examining W-2-Any questions on this W-2

60Calculating Income

VOE Remindersrlmndash Independently verify address to which you are sendingndash Do not put ldquoAttention tordquo on the formndash Forms should be signed dated with signature and printed name of employerndash If faxed note the origin of the faxed document-Is it coming from the employerndash Income and work history job title consistent with applicationndash Is bonus or overtime likely to continue Probability of Continued Employmentndash Review for different handwriting styles cross outs white out or cutting and

pastingndash Should it be handwritten Large corporationsndash The VOE cannot be hand carried by the applicant NOR should it be mailed to a

PO Box unless you have verified that that is the employerrsquos protocolndash VOE can be helpful in breaking out income such as commission overtime or

bonusndash Verify document does not expire prior to note date (Typically documents are

valid for four months)

Written Verification of Employment

61Calculating Income

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

54

Document Review Pay Stubs W-2s Written VOEsrlm

Calculating Income

Income Conversion Exercises

55Calculating Income

Calculate the monthly income for each pay scenario above

$60000$750

$1000

$1250$20 hour 40 hours weekly

56Calculating Income

Remindersndash The borrowerrsquos name and SSN must be consistent with the application

(Spelling middle initial or a JR or III)ndash Computer generatedndash If paid hourly the number of hours must be noted on the paystubndash Dated within 30 days of application If stale dated ask applicant for more recent

stubndash YTD income must be provided and should be consistent with monthly incomendash Note any commission overtime or bonus income-donrsquot use if you donrsquot needndash Review for possible liabilities that may need to be included in your debt ratio

(child support or alimony or IRS garnishment or a new loan take out)ndash If automatically deposited cross reference the income to the bank statementndash We are calculating income but also validating the document does employer

match back to application To the W-2

Pay Stubs

Paystub

57Calculating Income

58Calculating Income

W-2 Remindersrlmndash Name and SSN match application and also the pay stubndash Applicantrsquos address should also match the 1003 and bank statement mailing

addressndash Should be the most recent one or two (if required)ndash Is the ytd income consistent with monthly income if not obtain explanationndash Employer addresses match applicationndash Employer ID must be valid (XX-XXXXXX) is the proper formatndash FICA and Medicare withholding based on wages can be checkedndash You generally should NOT have the Employerrsquos Copy or the Social Security

Administration Copyndash Review the document at application donrsquot just shove in the loan filendash Obtain tax transcripts to support income if needed

Examining W-2s

59Calculating Income

Examining W-2-Any questions on this W-2

60Calculating Income

VOE Remindersrlmndash Independently verify address to which you are sendingndash Do not put ldquoAttention tordquo on the formndash Forms should be signed dated with signature and printed name of employerndash If faxed note the origin of the faxed document-Is it coming from the employerndash Income and work history job title consistent with applicationndash Is bonus or overtime likely to continue Probability of Continued Employmentndash Review for different handwriting styles cross outs white out or cutting and

pastingndash Should it be handwritten Large corporationsndash The VOE cannot be hand carried by the applicant NOR should it be mailed to a

PO Box unless you have verified that that is the employerrsquos protocolndash VOE can be helpful in breaking out income such as commission overtime or

bonusndash Verify document does not expire prior to note date (Typically documents are

valid for four months)

Written Verification of Employment

61Calculating Income

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Income Conversion Exercises

55Calculating Income

Calculate the monthly income for each pay scenario above

$60000$750

$1000

$1250$20 hour 40 hours weekly

56Calculating Income

Remindersndash The borrowerrsquos name and SSN must be consistent with the application

(Spelling middle initial or a JR or III)ndash Computer generatedndash If paid hourly the number of hours must be noted on the paystubndash Dated within 30 days of application If stale dated ask applicant for more recent

stubndash YTD income must be provided and should be consistent with monthly incomendash Note any commission overtime or bonus income-donrsquot use if you donrsquot needndash Review for possible liabilities that may need to be included in your debt ratio

(child support or alimony or IRS garnishment or a new loan take out)ndash If automatically deposited cross reference the income to the bank statementndash We are calculating income but also validating the document does employer

match back to application To the W-2

Pay Stubs

Paystub

57Calculating Income

58Calculating Income

W-2 Remindersrlmndash Name and SSN match application and also the pay stubndash Applicantrsquos address should also match the 1003 and bank statement mailing

addressndash Should be the most recent one or two (if required)ndash Is the ytd income consistent with monthly income if not obtain explanationndash Employer addresses match applicationndash Employer ID must be valid (XX-XXXXXX) is the proper formatndash FICA and Medicare withholding based on wages can be checkedndash You generally should NOT have the Employerrsquos Copy or the Social Security

Administration Copyndash Review the document at application donrsquot just shove in the loan filendash Obtain tax transcripts to support income if needed

Examining W-2s

59Calculating Income

Examining W-2-Any questions on this W-2

60Calculating Income

VOE Remindersrlmndash Independently verify address to which you are sendingndash Do not put ldquoAttention tordquo on the formndash Forms should be signed dated with signature and printed name of employerndash If faxed note the origin of the faxed document-Is it coming from the employerndash Income and work history job title consistent with applicationndash Is bonus or overtime likely to continue Probability of Continued Employmentndash Review for different handwriting styles cross outs white out or cutting and

pastingndash Should it be handwritten Large corporationsndash The VOE cannot be hand carried by the applicant NOR should it be mailed to a

PO Box unless you have verified that that is the employerrsquos protocolndash VOE can be helpful in breaking out income such as commission overtime or

bonusndash Verify document does not expire prior to note date (Typically documents are

valid for four months)

Written Verification of Employment

61Calculating Income

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

56Calculating Income

Remindersndash The borrowerrsquos name and SSN must be consistent with the application

(Spelling middle initial or a JR or III)ndash Computer generatedndash If paid hourly the number of hours must be noted on the paystubndash Dated within 30 days of application If stale dated ask applicant for more recent

stubndash YTD income must be provided and should be consistent with monthly incomendash Note any commission overtime or bonus income-donrsquot use if you donrsquot needndash Review for possible liabilities that may need to be included in your debt ratio

(child support or alimony or IRS garnishment or a new loan take out)ndash If automatically deposited cross reference the income to the bank statementndash We are calculating income but also validating the document does employer

match back to application To the W-2

Pay Stubs

Paystub

57Calculating Income

58Calculating Income

W-2 Remindersrlmndash Name and SSN match application and also the pay stubndash Applicantrsquos address should also match the 1003 and bank statement mailing

addressndash Should be the most recent one or two (if required)ndash Is the ytd income consistent with monthly income if not obtain explanationndash Employer addresses match applicationndash Employer ID must be valid (XX-XXXXXX) is the proper formatndash FICA and Medicare withholding based on wages can be checkedndash You generally should NOT have the Employerrsquos Copy or the Social Security

Administration Copyndash Review the document at application donrsquot just shove in the loan filendash Obtain tax transcripts to support income if needed

Examining W-2s

59Calculating Income

Examining W-2-Any questions on this W-2

60Calculating Income

VOE Remindersrlmndash Independently verify address to which you are sendingndash Do not put ldquoAttention tordquo on the formndash Forms should be signed dated with signature and printed name of employerndash If faxed note the origin of the faxed document-Is it coming from the employerndash Income and work history job title consistent with applicationndash Is bonus or overtime likely to continue Probability of Continued Employmentndash Review for different handwriting styles cross outs white out or cutting and

pastingndash Should it be handwritten Large corporationsndash The VOE cannot be hand carried by the applicant NOR should it be mailed to a

PO Box unless you have verified that that is the employerrsquos protocolndash VOE can be helpful in breaking out income such as commission overtime or

bonusndash Verify document does not expire prior to note date (Typically documents are

valid for four months)

Written Verification of Employment

61Calculating Income

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Paystub

57Calculating Income

58Calculating Income

W-2 Remindersrlmndash Name and SSN match application and also the pay stubndash Applicantrsquos address should also match the 1003 and bank statement mailing

addressndash Should be the most recent one or two (if required)ndash Is the ytd income consistent with monthly income if not obtain explanationndash Employer addresses match applicationndash Employer ID must be valid (XX-XXXXXX) is the proper formatndash FICA and Medicare withholding based on wages can be checkedndash You generally should NOT have the Employerrsquos Copy or the Social Security

Administration Copyndash Review the document at application donrsquot just shove in the loan filendash Obtain tax transcripts to support income if needed

Examining W-2s

59Calculating Income

Examining W-2-Any questions on this W-2

60Calculating Income

VOE Remindersrlmndash Independently verify address to which you are sendingndash Do not put ldquoAttention tordquo on the formndash Forms should be signed dated with signature and printed name of employerndash If faxed note the origin of the faxed document-Is it coming from the employerndash Income and work history job title consistent with applicationndash Is bonus or overtime likely to continue Probability of Continued Employmentndash Review for different handwriting styles cross outs white out or cutting and

pastingndash Should it be handwritten Large corporationsndash The VOE cannot be hand carried by the applicant NOR should it be mailed to a

PO Box unless you have verified that that is the employerrsquos protocolndash VOE can be helpful in breaking out income such as commission overtime or

bonusndash Verify document does not expire prior to note date (Typically documents are

valid for four months)

Written Verification of Employment

61Calculating Income

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

58Calculating Income

W-2 Remindersrlmndash Name and SSN match application and also the pay stubndash Applicantrsquos address should also match the 1003 and bank statement mailing

addressndash Should be the most recent one or two (if required)ndash Is the ytd income consistent with monthly income if not obtain explanationndash Employer addresses match applicationndash Employer ID must be valid (XX-XXXXXX) is the proper formatndash FICA and Medicare withholding based on wages can be checkedndash You generally should NOT have the Employerrsquos Copy or the Social Security

Administration Copyndash Review the document at application donrsquot just shove in the loan filendash Obtain tax transcripts to support income if needed

Examining W-2s

59Calculating Income

Examining W-2-Any questions on this W-2

60Calculating Income

VOE Remindersrlmndash Independently verify address to which you are sendingndash Do not put ldquoAttention tordquo on the formndash Forms should be signed dated with signature and printed name of employerndash If faxed note the origin of the faxed document-Is it coming from the employerndash Income and work history job title consistent with applicationndash Is bonus or overtime likely to continue Probability of Continued Employmentndash Review for different handwriting styles cross outs white out or cutting and

pastingndash Should it be handwritten Large corporationsndash The VOE cannot be hand carried by the applicant NOR should it be mailed to a

PO Box unless you have verified that that is the employerrsquos protocolndash VOE can be helpful in breaking out income such as commission overtime or

bonusndash Verify document does not expire prior to note date (Typically documents are

valid for four months)

Written Verification of Employment

61Calculating Income

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

59Calculating Income

Examining W-2-Any questions on this W-2

60Calculating Income

VOE Remindersrlmndash Independently verify address to which you are sendingndash Do not put ldquoAttention tordquo on the formndash Forms should be signed dated with signature and printed name of employerndash If faxed note the origin of the faxed document-Is it coming from the employerndash Income and work history job title consistent with applicationndash Is bonus or overtime likely to continue Probability of Continued Employmentndash Review for different handwriting styles cross outs white out or cutting and

pastingndash Should it be handwritten Large corporationsndash The VOE cannot be hand carried by the applicant NOR should it be mailed to a

PO Box unless you have verified that that is the employerrsquos protocolndash VOE can be helpful in breaking out income such as commission overtime or

bonusndash Verify document does not expire prior to note date (Typically documents are

valid for four months)

Written Verification of Employment

61Calculating Income

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

60Calculating Income

VOE Remindersrlmndash Independently verify address to which you are sendingndash Do not put ldquoAttention tordquo on the formndash Forms should be signed dated with signature and printed name of employerndash If faxed note the origin of the faxed document-Is it coming from the employerndash Income and work history job title consistent with applicationndash Is bonus or overtime likely to continue Probability of Continued Employmentndash Review for different handwriting styles cross outs white out or cutting and

pastingndash Should it be handwritten Large corporationsndash The VOE cannot be hand carried by the applicant NOR should it be mailed to a

PO Box unless you have verified that that is the employerrsquos protocolndash VOE can be helpful in breaking out income such as commission overtime or

bonusndash Verify document does not expire prior to note date (Typically documents are

valid for four months)

Written Verification of Employment

61Calculating Income

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

61Calculating Income

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

62

Exercises

Calculating Income

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Income Calculation Exercises

63Calculating Income

Keep in Mind

Sometimes there are several ways to calculate

income

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

64Calculating Income

Local Iron Workers Union W2rsquos from various jobsIncomerlm 15 rsquo16 `17

ndash W2 $52399 $61555Y-T-D paystubrlm As of 09-30-17 $59765John is unemployed seasonally

Calculation W2rsquos amp Paystub and 1099

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Sheet1

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Sheet2

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Sheet3

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

65Calculating Income

Calculation from W2rsquos amp Paystub

-- Sally works as a school nurse and works from Sept 1st- June 30th earning $802 every two weeks

-- She also receives child support for $500 per month that will continue for 10 years

rsquo16 rsquo17 rsquo18

W-2 $28897 $30250 See pay stub

YTD pay stub as of 121518 - $33925

- Samrsquos current salary is $35400

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

What is the qualifying monthly income

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Sheet1

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Sheet2

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Sheet3

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

Sheet1

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Sheet2

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Sheet3

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

66Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Sheet1

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Sheet2

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Sheet3

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

Paystub

67Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Sheet1

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Sheet2

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Sheet3

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

Pay Stub with Prior Year W-2

Calculating Income 68

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Reviewing Paystubs

2016 64528 12 = $ 5377 YTD $8562 4 months = $2140

Base pay $2854 x 24 = $68496 divided by 12 = $5708

Calculating Income 69

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

70Calculating Income

rlm Eli receives $4080 in taxable social security income as per his most recent tax returns His application states he is 42 years old with no dependents

rlm Calculate the monthly social security income ONLY for Eli Do you have to do anything special

0

Calculation from Tax Returns

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

71Calculating Income

Gross Monthly Income

BorrowerBase IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOther $415Sub TotalNet Rental Subject Net CashTotal $415

$4800 - $4080 = $720 x 25 (gross up only the non taxable portion which is $720) $4800 + $180 (which is 720 x 25) $4980 and $498012 = $415 Note Freddie Mac is requiring proof income is non-taxable for you to gross up

Calculation from Tax Returns

Due to his age you must also verify it will continue for at least three more years Be aware Freddie Mac requires

you confirm with tax returns or similar to confirm income is

non-taxable

bull Eli receives $4800 in social security income as per his most recent tax returns His application states he is 42 years old with no dependents

bull Calculate the monthly social security income ONLY for Eli Do you have to do anything special

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

72Calculating Income

Base IncomeSelf EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

Y-T-D-2018 through 63018rlmndash Assume it is currently 63018Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

Calculation from VOE

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Sheet1

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Gross Monthly Income							Gross Monthly Income
		Borrower							Lucy J
Base Income							Base Income
Self Employed							Self Employed
Overtime							Overtime
Bonuses							Bonuses
Commissions							Commissions
DividendsInterest							DividendsInterest
Other							Other
Sub Total							Sub Total
Net Rental							Net Rental
Subject Net Cash							Subject Net Cash
Total							Total

Sheet2

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
					Yor N
	Account Type				Resubordinated
	Balance				Omited
	Payment				Paid by Close
	Total Monthy Payments

Sheet3

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

(use PampI factor card)

First Mortgage (PampI)

Total Income

Other Financing (PampI)

($325 per $1000 mtg amt if applic)

Hazard Insurance

Total Housing Debt

Housing Ratio (FrontFirst)

Real Estate Taxes

Total Personal Debt

(see GE rate card if applic)

GE Mortgage Insurance

Total Debt

Total Debt Ratio (TDISecond Back)

HOA Dues

Other

Other

TOTAL

Other Income

$

Alimony Child Support

Auto Expense

Foster Care

Military

Notes Receivable

Other

PensionRetirement

Real Estate Differential

Social SecurityDisability

Trust Income

UnemploymentWelfare

VA Benefits

73Calculating Income

Base Income $208300Self EmployedOvertimeBonusesCommissionsDividendsInterestOtherSub TotalNet Rental Subject Net CashTotal

Incomerlm lsquo16 lsquo17 rsquo18ytd ndash Base $50000 $53000 $12500ndash Commission $0 $0 $35000

-Y-T-Drlm through 63018ndash Assume it is currently 63018

Donovanrsquos pay structure changed 1118 to base plus commission-New Annual Salary is $25000

What is the qualifying monthly income

$2500012 =$2083

Always Check Investor Guidelines Most Typically Require A Two Year History Of Receipt Before You Can Use As Qualifying Income

Calculation from VOE

Only base pay can be used

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

httpfanniemaecomportalindexhtml

Fannie Mae Website

74Calculating Income

Fannie Mae Selling Guide

Calculating Income 75

Freddie Mac SellerServicer Guide

76Calculating Income

httpwwwfreddiemaccomsinglefamily

Freddie Mac SellerServicer Guide

76Calculating Income

httpwwwfreddiemaccomsinglefamily

Freddie Mac Documentation Matrix

77Calculating Income

78Calculating Income

Freddie Mac Documentation Matrix

Calculating Income 79

Genworth Underwriting Guidelines

80Calculating Income

Genworth Rate Expressreg

Calculating Income 81

LOS Connections

Calculating Income 82

Calculating Income 83

Training Tools and Information

Training Tools and Information

Calculating Income 8484

Additional MI Site Information

Calculating Income 85

86Calculating Income

ActionCenterreg 800 4445664 Your Local Genworth

Regional Underwriter Your Genworth Sales

Representative

Your Genworth Resources

87Calculating Income

Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials While we strive forrlmaccuracy 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 IMPLIEDrlmINCLUDING 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

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How Benefit Your Bottom Line And Serve Your

Borrowers Better Visit migenworthcom To Learn More

Collateral Underwriterreg Home Ready reg and Desktop Underwriterreg or DUreg are registered trademarks of Fannie MaeLoan Product Advisorreg Home Possiblereg Loan Collateral Advisorreg and Home Value Explorerreg (HVEreg) are registered trademarks of Freddie MacActionCenterreg Homebuyer Privilegesreg and Rate Expressreg are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

• Slide Number 1
• Agenda
• Letrsquos Take A Quiz
• Income Requirements
• Income Document Requirements
• Resources
• Documenting Employment and Income
• Documenting Employment and Income
• IRS Form 4506-t
• IRS Form 4506-t
• Fannie Mae Guidelines
• Freddie Macrsquos Documentation Matrix
• Fannie Mae
• Fannie Mae Selling Guide Self-Employment
• Fannie Mae Updates 2018-09
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Commission Income and 2106 Expenses
• Slide Number 20
• Documentation Fannie Mae Selling Guide
• Slide Number 22
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Documentation Fannie Mae Selling Guide
• Fannie Mae ldquoOptionalrdquo VOE fields
• Fannie Mae Selling Guide
• Fannie Mae Job AidsFAQs
• Fannie Mae Underwriting FAQs
• Fannie Mae Underwriting FAQs
• Freddie Mac
• Bulletin 2016-19-Income Changes
• Bulletin 2018-08
• General Requirements For Freddie Mac
• Freddie Mac SellerServicer Guide
• Income Continuance Requirements
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Commission Income
• Freddie Mac Documentation Matrix
• Slide Number 42
• Slide Number 43
• Slide Number 44
• Freddie Mac Form 91
• Slide Number 46
• Slide Number 47
• Updates For Freddie Mac 2017-12
• What Guidelines Do We Follow
• Slide Number 50
• Freddie Mac Form 92
• Freddie Mac Form 92
• Updates For Freddie Mac 2017-20
• Document Review
• Income Conversion Exercises
• Pay Stubs
• Paystub
• Examining W-2s
• Examining W-2-Any questions on this W-2
• Written Verification of Employment
• Slide Number 61
• Exercises
• Income Calculation Exercises
• Calculation W2rsquos amp Paystub and 1099
• Calculation from W2rsquos amp Paystub
• Slide Number 66
• Paystub
• Pay Stub with Prior Year W-2
• Reviewing Paystubs
• Calculation from Tax Returns
• Calculation from Tax Returns
• Calculation from VOE
• Calculation from VOE
• Fannie Mae Website
• Fannie Mae Selling Guide
• Freddie Mac SellerServicer Guide
• Freddie Mac Documentation Matrix
• Freddie Mac Documentation Matrix
• Slide Number 79
• Genworth Underwriting Guidelines
• Genworth Rate Expressreg
• LOS Connections
• Slide Number 83
• Training Tools and Information
• Additional MI Site Information
• Slide Number 86
• Slide Number 87

78Calculating Income

Freddie Mac Documentation Matrix

Calculating Income 79

Genworth Underwriting Guidelines

80Calculating Income

Genworth Rate Expressreg

Calculating Income 81

LOS Connections

Calculating Income 82

Calculating Income 83

Training Tools and Information

Training Tools and Information

Calculating Income 8484

Additional MI Site Information

Calculating Income 85

86Calculating Income

ActionCenterreg 800 4445664 Your Local Genworth

Regional Underwriter Your Genworth Sales

Representative

Your Genworth Resources

87Calculating Income

Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials While we strive forrlmaccuracy 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 IMPLIEDrlmINCLUDING 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

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How Benefit Your Bottom Line And Serve Your

Borrowers Better Visit migenworthcom To Learn More

Collateral Underwriterreg Home Ready reg and Desktop Underwriterreg or DUreg are registered trademarks of Fannie MaeLoan Product Advisorreg Home Possiblereg Loan Collateral Advisorreg and Home Value Explorerreg (HVEreg) are registered trademarks of Freddie MacActionCenterreg Homebuyer Privilegesreg and Rate Expressreg are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

• Slide Number 1
• Agenda
• Letrsquos Take A Quiz
• Income Requirements
• Income Document Requirements
• Resources
• Documenting Employment and Income
• Documenting Employment and Income
• IRS Form 4506-t
• IRS Form 4506-t
• Fannie Mae Guidelines
• Freddie Macrsquos Documentation Matrix
• Fannie Mae
• Fannie Mae Selling Guide Self-Employment
• Fannie Mae Updates 2018-09
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Commission Income and 2106 Expenses
• Slide Number 20
• Documentation Fannie Mae Selling Guide
• Slide Number 22
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Documentation Fannie Mae Selling Guide
• Fannie Mae ldquoOptionalrdquo VOE fields
• Fannie Mae Selling Guide
• Fannie Mae Job AidsFAQs
• Fannie Mae Underwriting FAQs
• Fannie Mae Underwriting FAQs
• Freddie Mac
• Bulletin 2016-19-Income Changes
• Bulletin 2018-08
• General Requirements For Freddie Mac
• Freddie Mac SellerServicer Guide
• Income Continuance Requirements
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Commission Income
• Freddie Mac Documentation Matrix
• Slide Number 42
• Slide Number 43
• Slide Number 44
• Freddie Mac Form 91
• Slide Number 46
• Slide Number 47
• Updates For Freddie Mac 2017-12
• What Guidelines Do We Follow
• Slide Number 50
• Freddie Mac Form 92
• Freddie Mac Form 92
• Updates For Freddie Mac 2017-20
• Document Review
• Income Conversion Exercises
• Pay Stubs
• Paystub
• Examining W-2s
• Examining W-2-Any questions on this W-2
• Written Verification of Employment
• Slide Number 61
• Exercises
• Income Calculation Exercises
• Calculation W2rsquos amp Paystub and 1099
• Calculation from W2rsquos amp Paystub
• Slide Number 66
• Paystub
• Pay Stub with Prior Year W-2
• Reviewing Paystubs
• Calculation from Tax Returns
• Calculation from Tax Returns
• Calculation from VOE
• Calculation from VOE
• Fannie Mae Website
• Fannie Mae Selling Guide
• Freddie Mac SellerServicer Guide
• Freddie Mac Documentation Matrix
• Freddie Mac Documentation Matrix
• Slide Number 79
• Genworth Underwriting Guidelines
• Genworth Rate Expressreg
• LOS Connections
• Slide Number 83
• Training Tools and Information
• Additional MI Site Information
• Slide Number 86
• Slide Number 87

Calculating Income 79

Genworth Underwriting Guidelines

80Calculating Income

Genworth Rate Expressreg

Calculating Income 81

LOS Connections

Calculating Income 82

Calculating Income 83

Training Tools and Information

Training Tools and Information

Calculating Income 8484

Additional MI Site Information

Calculating Income 85

86Calculating Income

ActionCenterreg 800 4445664 Your Local Genworth

Regional Underwriter Your Genworth Sales

Representative

Your Genworth Resources

87Calculating Income

Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials While we strive forrlmaccuracy 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 IMPLIEDrlmINCLUDING 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

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How Benefit Your Bottom Line And Serve Your

Borrowers Better Visit migenworthcom To Learn More

Collateral Underwriterreg Home Ready reg and Desktop Underwriterreg or DUreg are registered trademarks of Fannie MaeLoan Product Advisorreg Home Possiblereg Loan Collateral Advisorreg and Home Value Explorerreg (HVEreg) are registered trademarks of Freddie MacActionCenterreg Homebuyer Privilegesreg and Rate Expressreg are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

• Slide Number 1
• Agenda
• Letrsquos Take A Quiz
• Income Requirements
• Income Document Requirements
• Resources
• Documenting Employment and Income
• Documenting Employment and Income
• IRS Form 4506-t
• IRS Form 4506-t
• Fannie Mae Guidelines
• Freddie Macrsquos Documentation Matrix
• Fannie Mae
• Fannie Mae Selling Guide Self-Employment
• Fannie Mae Updates 2018-09
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Commission Income and 2106 Expenses
• Slide Number 20
• Documentation Fannie Mae Selling Guide
• Slide Number 22
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Documentation Fannie Mae Selling Guide
• Fannie Mae ldquoOptionalrdquo VOE fields
• Fannie Mae Selling Guide
• Fannie Mae Job AidsFAQs
• Fannie Mae Underwriting FAQs
• Fannie Mae Underwriting FAQs
• Freddie Mac
• Bulletin 2016-19-Income Changes
• Bulletin 2018-08
• General Requirements For Freddie Mac
• Freddie Mac SellerServicer Guide
• Income Continuance Requirements
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Commission Income
• Freddie Mac Documentation Matrix
• Slide Number 42
• Slide Number 43
• Slide Number 44
• Freddie Mac Form 91
• Slide Number 46
• Slide Number 47
• Updates For Freddie Mac 2017-12
• What Guidelines Do We Follow
• Slide Number 50
• Freddie Mac Form 92
• Freddie Mac Form 92
• Updates For Freddie Mac 2017-20
• Document Review
• Income Conversion Exercises
• Pay Stubs
• Paystub
• Examining W-2s
• Examining W-2-Any questions on this W-2
• Written Verification of Employment
• Slide Number 61
• Exercises
• Income Calculation Exercises
• Calculation W2rsquos amp Paystub and 1099
• Calculation from W2rsquos amp Paystub
• Slide Number 66
• Paystub
• Pay Stub with Prior Year W-2
• Reviewing Paystubs
• Calculation from Tax Returns
• Calculation from Tax Returns
• Calculation from VOE
• Calculation from VOE
• Fannie Mae Website
• Fannie Mae Selling Guide
• Freddie Mac SellerServicer Guide
• Freddie Mac Documentation Matrix
• Freddie Mac Documentation Matrix
• Slide Number 79
• Genworth Underwriting Guidelines
• Genworth Rate Expressreg
• LOS Connections
• Slide Number 83
• Training Tools and Information
• Additional MI Site Information
• Slide Number 86
• Slide Number 87

Genworth Underwriting Guidelines

80Calculating Income

Genworth Rate Expressreg

Calculating Income 81

LOS Connections

Calculating Income 82

Calculating Income 83

Training Tools and Information

Training Tools and Information

Calculating Income 8484

Additional MI Site Information

Calculating Income 85

86Calculating Income

ActionCenterreg 800 4445664 Your Local Genworth

Regional Underwriter Your Genworth Sales

Representative

Your Genworth Resources

87Calculating Income

Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials While we strive forrlmaccuracy 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 IMPLIEDrlmINCLUDING 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

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How Benefit Your Bottom Line And Serve Your

Borrowers Better Visit migenworthcom To Learn More

Collateral Underwriterreg Home Ready reg and Desktop Underwriterreg or DUreg are registered trademarks of Fannie MaeLoan Product Advisorreg Home Possiblereg Loan Collateral Advisorreg and Home Value Explorerreg (HVEreg) are registered trademarks of Freddie MacActionCenterreg Homebuyer Privilegesreg and Rate Expressreg are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

• Slide Number 1
• Agenda
• Letrsquos Take A Quiz
• Income Requirements
• Income Document Requirements
• Resources
• Documenting Employment and Income
• Documenting Employment and Income
• IRS Form 4506-t
• IRS Form 4506-t
• Fannie Mae Guidelines
• Freddie Macrsquos Documentation Matrix
• Fannie Mae
• Fannie Mae Selling Guide Self-Employment
• Fannie Mae Updates 2018-09
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Commission Income and 2106 Expenses
• Slide Number 20
• Documentation Fannie Mae Selling Guide
• Slide Number 22
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Documentation Fannie Mae Selling Guide
• Fannie Mae ldquoOptionalrdquo VOE fields
• Fannie Mae Selling Guide
• Fannie Mae Job AidsFAQs
• Fannie Mae Underwriting FAQs
• Fannie Mae Underwriting FAQs
• Freddie Mac
• Bulletin 2016-19-Income Changes
• Bulletin 2018-08
• General Requirements For Freddie Mac
• Freddie Mac SellerServicer Guide
• Income Continuance Requirements
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Commission Income
• Freddie Mac Documentation Matrix
• Slide Number 42
• Slide Number 43
• Slide Number 44
• Freddie Mac Form 91
• Slide Number 46
• Slide Number 47
• Updates For Freddie Mac 2017-12
• What Guidelines Do We Follow
• Slide Number 50
• Freddie Mac Form 92
• Freddie Mac Form 92
• Updates For Freddie Mac 2017-20
• Document Review
• Income Conversion Exercises
• Pay Stubs
• Paystub
• Examining W-2s
• Examining W-2-Any questions on this W-2
• Written Verification of Employment
• Slide Number 61
• Exercises
• Income Calculation Exercises
• Calculation W2rsquos amp Paystub and 1099
• Calculation from W2rsquos amp Paystub
• Slide Number 66
• Paystub
• Pay Stub with Prior Year W-2
• Reviewing Paystubs
• Calculation from Tax Returns
• Calculation from Tax Returns
• Calculation from VOE
• Calculation from VOE
• Fannie Mae Website
• Fannie Mae Selling Guide
• Freddie Mac SellerServicer Guide
• Freddie Mac Documentation Matrix
• Freddie Mac Documentation Matrix
• Slide Number 79
• Genworth Underwriting Guidelines
• Genworth Rate Expressreg
• LOS Connections
• Slide Number 83
• Training Tools and Information
• Additional MI Site Information
• Slide Number 86
• Slide Number 87

Genworth Rate Expressreg

Calculating Income 81

LOS Connections

Calculating Income 82

Calculating Income 83

Training Tools and Information

Training Tools and Information

Calculating Income 8484

Additional MI Site Information

Calculating Income 85

86Calculating Income

ActionCenterreg 800 4445664 Your Local Genworth

Regional Underwriter Your Genworth Sales

Representative

Your Genworth Resources

87Calculating Income

Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials While we strive forrlmaccuracy 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 IMPLIEDrlmINCLUDING 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

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How Benefit Your Bottom Line And Serve Your

Borrowers Better Visit migenworthcom To Learn More

Collateral Underwriterreg Home Ready reg and Desktop Underwriterreg or DUreg are registered trademarks of Fannie MaeLoan Product Advisorreg Home Possiblereg Loan Collateral Advisorreg and Home Value Explorerreg (HVEreg) are registered trademarks of Freddie MacActionCenterreg Homebuyer Privilegesreg and Rate Expressreg are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

• Slide Number 1
• Agenda
• Letrsquos Take A Quiz
• Income Requirements
• Income Document Requirements
• Resources
• Documenting Employment and Income
• Documenting Employment and Income
• IRS Form 4506-t
• IRS Form 4506-t
• Fannie Mae Guidelines
• Freddie Macrsquos Documentation Matrix
• Fannie Mae
• Fannie Mae Selling Guide Self-Employment
• Fannie Mae Updates 2018-09
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Commission Income and 2106 Expenses
• Slide Number 20
• Documentation Fannie Mae Selling Guide
• Slide Number 22
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Documentation Fannie Mae Selling Guide
• Fannie Mae ldquoOptionalrdquo VOE fields
• Fannie Mae Selling Guide
• Fannie Mae Job AidsFAQs
• Fannie Mae Underwriting FAQs
• Fannie Mae Underwriting FAQs
• Freddie Mac
• Bulletin 2016-19-Income Changes
• Bulletin 2018-08
• General Requirements For Freddie Mac
• Freddie Mac SellerServicer Guide
• Income Continuance Requirements
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Commission Income
• Freddie Mac Documentation Matrix
• Slide Number 42
• Slide Number 43
• Slide Number 44
• Freddie Mac Form 91
• Slide Number 46
• Slide Number 47
• Updates For Freddie Mac 2017-12
• What Guidelines Do We Follow
• Slide Number 50
• Freddie Mac Form 92
• Freddie Mac Form 92
• Updates For Freddie Mac 2017-20
• Document Review
• Income Conversion Exercises
• Pay Stubs
• Paystub
• Examining W-2s
• Examining W-2-Any questions on this W-2
• Written Verification of Employment
• Slide Number 61
• Exercises
• Income Calculation Exercises
• Calculation W2rsquos amp Paystub and 1099
• Calculation from W2rsquos amp Paystub
• Slide Number 66
• Paystub
• Pay Stub with Prior Year W-2
• Reviewing Paystubs
• Calculation from Tax Returns
• Calculation from Tax Returns
• Calculation from VOE
• Calculation from VOE
• Fannie Mae Website
• Fannie Mae Selling Guide
• Freddie Mac SellerServicer Guide
• Freddie Mac Documentation Matrix
• Freddie Mac Documentation Matrix
• Slide Number 79
• Genworth Underwriting Guidelines
• Genworth Rate Expressreg
• LOS Connections
• Slide Number 83
• Training Tools and Information
• Additional MI Site Information
• Slide Number 86
• Slide Number 87

LOS Connections

Calculating Income 82

Calculating Income 83

Training Tools and Information

Training Tools and Information

Calculating Income 8484

Additional MI Site Information

Calculating Income 85

86Calculating Income

ActionCenterreg 800 4445664 Your Local Genworth

Regional Underwriter Your Genworth Sales

Representative

Your Genworth Resources

87Calculating Income

Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials While we strive forrlmaccuracy 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 IMPLIEDrlmINCLUDING 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

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How Benefit Your Bottom Line And Serve Your

Borrowers Better Visit migenworthcom To Learn More

Collateral Underwriterreg Home Ready reg and Desktop Underwriterreg or DUreg are registered trademarks of Fannie MaeLoan Product Advisorreg Home Possiblereg Loan Collateral Advisorreg and Home Value Explorerreg (HVEreg) are registered trademarks of Freddie MacActionCenterreg Homebuyer Privilegesreg and Rate Expressreg are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

• Slide Number 1
• Agenda
• Letrsquos Take A Quiz
• Income Requirements
• Income Document Requirements
• Resources
• Documenting Employment and Income
• Documenting Employment and Income
• IRS Form 4506-t
• IRS Form 4506-t
• Fannie Mae Guidelines
• Freddie Macrsquos Documentation Matrix
• Fannie Mae
• Fannie Mae Selling Guide Self-Employment
• Fannie Mae Updates 2018-09
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Commission Income and 2106 Expenses
• Slide Number 20
• Documentation Fannie Mae Selling Guide
• Slide Number 22
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Documentation Fannie Mae Selling Guide
• Fannie Mae ldquoOptionalrdquo VOE fields
• Fannie Mae Selling Guide
• Fannie Mae Job AidsFAQs
• Fannie Mae Underwriting FAQs
• Fannie Mae Underwriting FAQs
• Freddie Mac
• Bulletin 2016-19-Income Changes
• Bulletin 2018-08
• General Requirements For Freddie Mac
• Freddie Mac SellerServicer Guide
• Income Continuance Requirements
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Commission Income
• Freddie Mac Documentation Matrix
• Slide Number 42
• Slide Number 43
• Slide Number 44
• Freddie Mac Form 91
• Slide Number 46
• Slide Number 47
• Updates For Freddie Mac 2017-12
• What Guidelines Do We Follow
• Slide Number 50
• Freddie Mac Form 92
• Freddie Mac Form 92
• Updates For Freddie Mac 2017-20
• Document Review
• Income Conversion Exercises
• Pay Stubs
• Paystub
• Examining W-2s
• Examining W-2-Any questions on this W-2
• Written Verification of Employment
• Slide Number 61
• Exercises
• Income Calculation Exercises
• Calculation W2rsquos amp Paystub and 1099
• Calculation from W2rsquos amp Paystub
• Slide Number 66
• Paystub
• Pay Stub with Prior Year W-2
• Reviewing Paystubs
• Calculation from Tax Returns
• Calculation from Tax Returns
• Calculation from VOE
• Calculation from VOE
• Fannie Mae Website
• Fannie Mae Selling Guide
• Freddie Mac SellerServicer Guide
• Freddie Mac Documentation Matrix
• Freddie Mac Documentation Matrix
• Slide Number 79
• Genworth Underwriting Guidelines
• Genworth Rate Expressreg
• LOS Connections
• Slide Number 83
• Training Tools and Information
• Additional MI Site Information
• Slide Number 86
• Slide Number 87

Calculating Income 83

Training Tools and Information

Training Tools and Information

Calculating Income 8484

Additional MI Site Information

Calculating Income 85

86Calculating Income

ActionCenterreg 800 4445664 Your Local Genworth

Regional Underwriter Your Genworth Sales

Representative

Your Genworth Resources

87Calculating Income

Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials While we strive forrlmaccuracy 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 IMPLIEDrlmINCLUDING 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

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How Benefit Your Bottom Line And Serve Your

Borrowers Better Visit migenworthcom To Learn More

Collateral Underwriterreg Home Ready reg and Desktop Underwriterreg or DUreg are registered trademarks of Fannie MaeLoan Product Advisorreg Home Possiblereg Loan Collateral Advisorreg and Home Value Explorerreg (HVEreg) are registered trademarks of Freddie MacActionCenterreg Homebuyer Privilegesreg and Rate Expressreg are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

• Slide Number 1
• Agenda
• Letrsquos Take A Quiz
• Income Requirements
• Income Document Requirements
• Resources
• Documenting Employment and Income
• Documenting Employment and Income
• IRS Form 4506-t
• IRS Form 4506-t
• Fannie Mae Guidelines
• Freddie Macrsquos Documentation Matrix
• Fannie Mae
• Fannie Mae Selling Guide Self-Employment
• Fannie Mae Updates 2018-09
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Commission Income and 2106 Expenses
• Slide Number 20
• Documentation Fannie Mae Selling Guide
• Slide Number 22
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Documentation Fannie Mae Selling Guide
• Fannie Mae ldquoOptionalrdquo VOE fields
• Fannie Mae Selling Guide
• Fannie Mae Job AidsFAQs
• Fannie Mae Underwriting FAQs
• Fannie Mae Underwriting FAQs
• Freddie Mac
• Bulletin 2016-19-Income Changes
• Bulletin 2018-08
• General Requirements For Freddie Mac
• Freddie Mac SellerServicer Guide
• Income Continuance Requirements
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Commission Income
• Freddie Mac Documentation Matrix
• Slide Number 42
• Slide Number 43
• Slide Number 44
• Freddie Mac Form 91
• Slide Number 46
• Slide Number 47
• Updates For Freddie Mac 2017-12
• What Guidelines Do We Follow
• Slide Number 50
• Freddie Mac Form 92
• Freddie Mac Form 92
• Updates For Freddie Mac 2017-20
• Document Review
• Income Conversion Exercises
• Pay Stubs
• Paystub
• Examining W-2s
• Examining W-2-Any questions on this W-2
• Written Verification of Employment
• Slide Number 61
• Exercises
• Income Calculation Exercises
• Calculation W2rsquos amp Paystub and 1099
• Calculation from W2rsquos amp Paystub
• Slide Number 66
• Paystub
• Pay Stub with Prior Year W-2
• Reviewing Paystubs
• Calculation from Tax Returns
• Calculation from Tax Returns
• Calculation from VOE
• Calculation from VOE
• Fannie Mae Website
• Fannie Mae Selling Guide
• Freddie Mac SellerServicer Guide
• Freddie Mac Documentation Matrix
• Freddie Mac Documentation Matrix
• Slide Number 79
• Genworth Underwriting Guidelines
• Genworth Rate Expressreg
• LOS Connections
• Slide Number 83
• Training Tools and Information
• Additional MI Site Information
• Slide Number 86
• Slide Number 87

Training Tools and Information

Calculating Income 8484

Additional MI Site Information

Calculating Income 85

86Calculating Income

ActionCenterreg 800 4445664 Your Local Genworth

Regional Underwriter Your Genworth Sales

Representative

Your Genworth Resources

87Calculating Income

Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials While we strive forrlmaccuracy 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 IMPLIEDrlmINCLUDING 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

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How Benefit Your Bottom Line And Serve Your

Borrowers Better Visit migenworthcom To Learn More

Collateral Underwriterreg Home Ready reg and Desktop Underwriterreg or DUreg are registered trademarks of Fannie MaeLoan Product Advisorreg Home Possiblereg Loan Collateral Advisorreg and Home Value Explorerreg (HVEreg) are registered trademarks of Freddie MacActionCenterreg Homebuyer Privilegesreg and Rate Expressreg are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

• Slide Number 1
• Agenda
• Letrsquos Take A Quiz
• Income Requirements
• Income Document Requirements
• Resources
• Documenting Employment and Income
• Documenting Employment and Income
• IRS Form 4506-t
• IRS Form 4506-t
• Fannie Mae Guidelines
• Freddie Macrsquos Documentation Matrix
• Fannie Mae
• Fannie Mae Selling Guide Self-Employment
• Fannie Mae Updates 2018-09
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Commission Income and 2106 Expenses
• Slide Number 20
• Documentation Fannie Mae Selling Guide
• Slide Number 22
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Documentation Fannie Mae Selling Guide
• Fannie Mae ldquoOptionalrdquo VOE fields
• Fannie Mae Selling Guide
• Fannie Mae Job AidsFAQs
• Fannie Mae Underwriting FAQs
• Fannie Mae Underwriting FAQs
• Freddie Mac
• Bulletin 2016-19-Income Changes
• Bulletin 2018-08
• General Requirements For Freddie Mac
• Freddie Mac SellerServicer Guide
• Income Continuance Requirements
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Commission Income
• Freddie Mac Documentation Matrix
• Slide Number 42
• Slide Number 43
• Slide Number 44
• Freddie Mac Form 91
• Slide Number 46
• Slide Number 47
• Updates For Freddie Mac 2017-12
• What Guidelines Do We Follow
• Slide Number 50
• Freddie Mac Form 92
• Freddie Mac Form 92
• Updates For Freddie Mac 2017-20
• Document Review
• Income Conversion Exercises
• Pay Stubs
• Paystub
• Examining W-2s
• Examining W-2-Any questions on this W-2
• Written Verification of Employment
• Slide Number 61
• Exercises
• Income Calculation Exercises
• Calculation W2rsquos amp Paystub and 1099
• Calculation from W2rsquos amp Paystub
• Slide Number 66
• Paystub
• Pay Stub with Prior Year W-2
• Reviewing Paystubs
• Calculation from Tax Returns
• Calculation from Tax Returns
• Calculation from VOE
• Calculation from VOE
• Fannie Mae Website
• Fannie Mae Selling Guide
• Freddie Mac SellerServicer Guide
• Freddie Mac Documentation Matrix
• Freddie Mac Documentation Matrix
• Slide Number 79
• Genworth Underwriting Guidelines
• Genworth Rate Expressreg
• LOS Connections
• Slide Number 83
• Training Tools and Information
• Additional MI Site Information
• Slide Number 86
• Slide Number 87

Additional MI Site Information

Calculating Income 85

86Calculating Income

ActionCenterreg 800 4445664 Your Local Genworth

Regional Underwriter Your Genworth Sales

Representative

Your Genworth Resources

87Calculating Income

Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials While we strive forrlmaccuracy 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 IMPLIEDrlmINCLUDING 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

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How Benefit Your Bottom Line And Serve Your

Borrowers Better Visit migenworthcom To Learn More

Collateral Underwriterreg Home Ready reg and Desktop Underwriterreg or DUreg are registered trademarks of Fannie MaeLoan Product Advisorreg Home Possiblereg Loan Collateral Advisorreg and Home Value Explorerreg (HVEreg) are registered trademarks of Freddie MacActionCenterreg Homebuyer Privilegesreg and Rate Expressreg are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

• Slide Number 1
• Agenda
• Letrsquos Take A Quiz
• Income Requirements
• Income Document Requirements
• Resources
• Documenting Employment and Income
• Documenting Employment and Income
• IRS Form 4506-t
• IRS Form 4506-t
• Fannie Mae Guidelines
• Freddie Macrsquos Documentation Matrix
• Fannie Mae
• Fannie Mae Selling Guide Self-Employment
• Fannie Mae Updates 2018-09
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Commission Income and 2106 Expenses
• Slide Number 20
• Documentation Fannie Mae Selling Guide
• Slide Number 22
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Documentation Fannie Mae Selling Guide
• Fannie Mae ldquoOptionalrdquo VOE fields
• Fannie Mae Selling Guide
• Fannie Mae Job AidsFAQs
• Fannie Mae Underwriting FAQs
• Fannie Mae Underwriting FAQs
• Freddie Mac
• Bulletin 2016-19-Income Changes
• Bulletin 2018-08
• General Requirements For Freddie Mac
• Freddie Mac SellerServicer Guide
• Income Continuance Requirements
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Commission Income
• Freddie Mac Documentation Matrix
• Slide Number 42
• Slide Number 43
• Slide Number 44
• Freddie Mac Form 91
• Slide Number 46
• Slide Number 47
• Updates For Freddie Mac 2017-12
• What Guidelines Do We Follow
• Slide Number 50
• Freddie Mac Form 92
• Freddie Mac Form 92
• Updates For Freddie Mac 2017-20
• Document Review
• Income Conversion Exercises
• Pay Stubs
• Paystub
• Examining W-2s
• Examining W-2-Any questions on this W-2
• Written Verification of Employment
• Slide Number 61
• Exercises
• Income Calculation Exercises
• Calculation W2rsquos amp Paystub and 1099
• Calculation from W2rsquos amp Paystub
• Slide Number 66
• Paystub
• Pay Stub with Prior Year W-2
• Reviewing Paystubs
• Calculation from Tax Returns
• Calculation from Tax Returns
• Calculation from VOE
• Calculation from VOE
• Fannie Mae Website
• Fannie Mae Selling Guide
• Freddie Mac SellerServicer Guide
• Freddie Mac Documentation Matrix
• Freddie Mac Documentation Matrix
• Slide Number 79
• Genworth Underwriting Guidelines
• Genworth Rate Expressreg
• LOS Connections
• Slide Number 83
• Training Tools and Information
• Additional MI Site Information
• Slide Number 86
• Slide Number 87

86Calculating Income

ActionCenterreg 800 4445664 Your Local Genworth

Regional Underwriter Your Genworth Sales

Representative

Your Genworth Resources

87Calculating Income

Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials While we strive forrlmaccuracy 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 IMPLIEDrlmINCLUDING 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

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How Benefit Your Bottom Line And Serve Your

Borrowers Better Visit migenworthcom To Learn More

Collateral Underwriterreg Home Ready reg and Desktop Underwriterreg or DUreg are registered trademarks of Fannie MaeLoan Product Advisorreg Home Possiblereg Loan Collateral Advisorreg and Home Value Explorerreg (HVEreg) are registered trademarks of Freddie MacActionCenterreg Homebuyer Privilegesreg and Rate Expressreg are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

• Slide Number 1
• Agenda
• Letrsquos Take A Quiz
• Income Requirements
• Income Document Requirements
• Resources
• Documenting Employment and Income
• Documenting Employment and Income
• IRS Form 4506-t
• IRS Form 4506-t
• Fannie Mae Guidelines
• Freddie Macrsquos Documentation Matrix
• Fannie Mae
• Fannie Mae Selling Guide Self-Employment
• Fannie Mae Updates 2018-09
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Commission Income and 2106 Expenses
• Slide Number 20
• Documentation Fannie Mae Selling Guide
• Slide Number 22
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Documentation Fannie Mae Selling Guide
• Fannie Mae ldquoOptionalrdquo VOE fields
• Fannie Mae Selling Guide
• Fannie Mae Job AidsFAQs
• Fannie Mae Underwriting FAQs
• Fannie Mae Underwriting FAQs
• Freddie Mac
• Bulletin 2016-19-Income Changes
• Bulletin 2018-08
• General Requirements For Freddie Mac
• Freddie Mac SellerServicer Guide
• Income Continuance Requirements
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Commission Income
• Freddie Mac Documentation Matrix
• Slide Number 42
• Slide Number 43
• Slide Number 44
• Freddie Mac Form 91
• Slide Number 46
• Slide Number 47
• Updates For Freddie Mac 2017-12
• What Guidelines Do We Follow
• Slide Number 50
• Freddie Mac Form 92
• Freddie Mac Form 92
• Updates For Freddie Mac 2017-20
• Document Review
• Income Conversion Exercises
• Pay Stubs
• Paystub
• Examining W-2s
• Examining W-2-Any questions on this W-2
• Written Verification of Employment
• Slide Number 61
• Exercises
• Income Calculation Exercises
• Calculation W2rsquos amp Paystub and 1099
• Calculation from W2rsquos amp Paystub
• Slide Number 66
• Paystub
• Pay Stub with Prior Year W-2
• Reviewing Paystubs
• Calculation from Tax Returns
• Calculation from Tax Returns
• Calculation from VOE
• Calculation from VOE
• Fannie Mae Website
• Fannie Mae Selling Guide
• Freddie Mac SellerServicer Guide
• Freddie Mac Documentation Matrix
• Freddie Mac Documentation Matrix
• Slide Number 79
• Genworth Underwriting Guidelines
• Genworth Rate Expressreg
• LOS Connections
• Slide Number 83
• Training Tools and Information
• Additional MI Site Information
• Slide Number 86
• Slide Number 87

87Calculating Income

Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials While we strive forrlmaccuracy 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 IMPLIEDrlmINCLUDING 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

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How Benefit Your Bottom Line And Serve Your

Borrowers Better Visit migenworthcom To Learn More

Collateral Underwriterreg Home Ready reg and Desktop Underwriterreg or DUreg are registered trademarks of Fannie MaeLoan Product Advisorreg Home Possiblereg Loan Collateral Advisorreg and Home Value Explorerreg (HVEreg) are registered trademarks of Freddie MacActionCenterreg Homebuyer Privilegesreg and Rate Expressreg are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

• Slide Number 1
• Agenda
• Letrsquos Take A Quiz
• Income Requirements
• Income Document Requirements
• Resources
• Documenting Employment and Income
• Documenting Employment and Income
• IRS Form 4506-t
• IRS Form 4506-t
• Fannie Mae Guidelines
• Freddie Macrsquos Documentation Matrix
• Fannie Mae
• Fannie Mae Selling Guide Self-Employment
• Fannie Mae Updates 2018-09
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Commission Income and 2106 Expenses
• Slide Number 20
• Documentation Fannie Mae Selling Guide
• Slide Number 22
• Fannie Mae Selling Guide
• Fannie Mae Selling Guide
• Documentation Fannie Mae Selling Guide
• Fannie Mae ldquoOptionalrdquo VOE fields
• Fannie Mae Selling Guide
• Fannie Mae Job AidsFAQs
• Fannie Mae Underwriting FAQs
• Fannie Mae Underwriting FAQs
• Freddie Mac
• Bulletin 2016-19-Income Changes
• Bulletin 2018-08
• General Requirements For Freddie Mac
• Freddie Mac SellerServicer Guide
• Income Continuance Requirements
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Primary Base and Secondary Employment
• Freddie Mac Commission Income
• Freddie Mac Documentation Matrix
• Slide Number 42
• Slide Number 43
• Slide Number 44
• Freddie Mac Form 91
• Slide Number 46
• Slide Number 47
• Updates For Freddie Mac 2017-12
• What Guidelines Do We Follow
• Slide Number 50
• Freddie Mac Form 92
• Freddie Mac Form 92
• Updates For Freddie Mac 2017-20
• Document Review
• Income Conversion Exercises
• Pay Stubs
• Paystub
• Examining W-2s
• Examining W-2-Any questions on this W-2
• Written Verification of Employment
• Slide Number 61
• Exercises
• Income Calculation Exercises
• Calculation W2rsquos amp Paystub and 1099
• Calculation from W2rsquos amp Paystub
• Slide Number 66
• Paystub
• Pay Stub with Prior Year W-2
• Reviewing Paystubs
• Calculation from Tax Returns
• Calculation from Tax Returns
• Calculation from VOE
• Calculation from VOE
• Fannie Mae Website
• Fannie Mae Selling Guide
• Freddie Mac SellerServicer Guide
• Freddie Mac Documentation Matrix
• Freddie Mac Documentation Matrix
• Slide Number 79
• Genworth Underwriting Guidelines
• Genworth Rate Expressreg
• LOS Connections
• Slide Number 83
• Training Tools and Information
• Additional MI Site Information
• Slide Number 86
• Slide Number 87