FNMA Form 1084 Is Better, But Not Perfect
If you have been following my blogs a recurring theme is how both agencies have made many updates to their guidelines and programs. Some of these changes have been on guidelines that have been the same since the days I started in the mortgage business in 1994.
One of those items that never changed was FNMA 1084 form. For years it was untouched then in December 2014 they made some major changes on the form in regards to the business income area and distributions. A few months later FNMA did end up making some minor shifts to that calculation and now are on the current version dated 08 25 15. I have to give kudos to FNMA on the update, after all these years the 1084 is now a very functional income form. In my blog “The FNMA 1084 is useless” I went through the form and all the challenges it presented, at best that form was long, confusing, and easy to make many errors on.
The FNMA 1084 was always meant to help analyze self-employed borrowers income. I always found it puzzling how the form had entries for dividends/interest, social security, capital gains, and real estate owned just to name a few. This just made the form long and full of items that really are not self employed based. To demonstrate my point if I asked a hundred people in the mortgage business this question “Is a borrower who is receiving pension, social security, and dividend income self employed?” I would hope it would be less than 5 people who said yes (there are always crazy people out there).
The new FNMA 1084 is almost all SE income based now, the form is much cleaner and the few items that are not business based fit well on the form because they use the same “cash flow analysis” method to determine the amount of qualifying income (i.e. royalty income).
Here is a link to the new form FNMA 1084, when you compare the old to the new the improvements will jump off the page at you. Recently UberWriter software has been updated to the new form, and added a few helpful features of our own. UberWriter is just as easy to use as it always has been but now when you click the 1084 report you will see the most recent version of the report. Using UberWriter will save time, ensure accuracy, and have the best documented income possible for your loan files. I am glad to see FNMA is starting to catch up with us!