Union Worker FNMA Guideline Update

Today we’re going over the Union Worker update published in Fannie Mae SEL 201A-08 posted 10/02/18.  Now this is not a major update or change of policy.  However, I wanted to blog about this because it brings a fair amount of questions during training sessions. Union workers tend to be confusing because they have multiple elements of income evaluation.  Examples like temporary work assignments, multiple rates of […]

How to use FNMA 1084 and FHLMC Form 91 – Part 2

The cash flow forms such as the FHLMC Form 91 have been around for a very long time, with that being said if you do some research on mortgage industry thousands of people search every day looking for answers on how to use these forms.  As I have written in the past these forms are very limited to the type of borrowers they work for, and I believe the […]

Freddie Mac’s Home Possible Streamlined and Improved

The MBA projects that mortgage volume will be about 1.8 Trillion for 2019, which is stable compared to 2018 but down compared to 2017.  The major reason for this downward change is less opportunities for refinances due to the current rates and other factors.   That prediction means we need to stay focused on the primary mission of being a great (and long lasting) mortgage business.  This means […]

FHLMC changes student loan programs

How to calculate statutory employee pay

Ever wonder why the IRS tax code is currently at 74,608 pages of information? (and yes, this is a rhetorical question).  I am convinced it is a ploy to drive us nuts around tax time.  I mean what did we do to the IRS to mess with us so much! So here is a twist, you review a borrower’s application, it seems that they are employed by […]

The power of teamwork

We have been producing blogs since 2013.  Over the years we have gained followers that are originators, processors, underwriters, and operations managers.  So when I use the word team, lets use one of my favorite southern terms to describe who I am talking too……. All Y’All!!! We have a problem that the team needs to address.  That is the perception that getting a mortgage is paperwork heavy, […]

Is your borrower a “saver” but exceeded the maximum DTI?

If you have ever worked with a borrower who is an excellent saver but is coming up short on DTI ratio you might be able to use this extra trick to get them approved.  This extra boost to income is following the Fannie Mae guideline under B3-3-.1-09 called Employment Related Assets as Qualifying Income. In other words, 401k / IRA/ SEP money saved that the borrower has […]

Avoid 3 major mistakes when using FHLMC Form 91

I would bet at one time or another you have Googled Freddie Mac Form 91 and gave it a try.  The purpose of this form is to create a uniform way to evaluate self-employed income and other forms of income for your borrower outside of employment income. The form gives you an acceptable format to complete an income evaluation of your typical self-employed borrower.  However, if you […]

How to use FNMA 1039 on Form 8825

Income calculation – Explained!