Issue: Q&A - May 25, 2016

NMLS ID-Required Display: If someone has a Facebook Page or other Social Media pages, what are the requirements for displaying their NMLS ID?

Answer: Your NMLS ID has to be easily read and seen by the consumer without having to log onto your site. The auditors are searching your name, your company name, etc. to see what pulls up. Your NMLS ID and other proper disclosures all need to be easily seen right away. You will also need […]

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Retirement Income – Part Time Job: A borrower with Social Security Income and Pension also works part time at 30+ hours a week. Can this income be used if we have a 6-month history?

Answer: Yes, 6 months should be fine. Here are the guidelines from the USDA manual for your reference. USDA may only require 6 months of employment history when there is evidence of previous employment history. Salaries, Wages and Other Forms of Repayment Income The income of each party to the note must be analyzed to […]

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Entitlement Benefits – Commission Income: My veteran borrower has a home in another state which hasn’t sold, and where he used his VA entitlement. Also his income is base plus commission. Would VA or FHA be better?

Answer: Because VA is a probably the better loan product for this veteran, we have attached examples of how to calculate remaining available entitlement. We’ve also included the VA guideline on Commission Income below. VA leans more toward a full 2-year history of commission income, but the circumstances may be such that it will be […]

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Seller Contributions – Limits: Can you clear up the confusion on the amount of seller assistance allowed on a VA loan?

  [JUNE 2018 Updated Chart – Fannie/Freddie/FHA/VA/USDA Maximum Seller Contribution Chart &  June 2018 UPDATED Mortgage Talking Points™ flyer, Maximum Seller Contribution Chart – Fannie, Freddie, FHA, VA & USDA]Answer:The 4% seller concession limitation for VA loans is uniquely calculated. It DOES NOT include closing costs, only pre-paids and other items. Technically you can have […]

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Income Verification – Documentation Required: My competitors are not getting tax returns or IRS transcripts for W2 borrowers. How are they able to do that?

Answer: While FHA requires a 4506-T to be executed for a W2’d borrower, they do not require IRS tax transcripts or IRS W2 transcripts. Those requirements come from investor overlays. See the guideline below. Reference: ii. Employment Related Income (TOTAL) (A) Definition – Employment Income refers to income received as an employee of a business […]

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