Issue: Q&A - December 25, 2018

Fannie Mae and Freddie Mac – Oil Leases & Royalty Income: Is the 3-year continuity of income required for oil leases where income is reported on the tax return, but no one knows how long a well will produce oil?

Answer: This falls under Royalty Income. Fannie Mae is more restrictive and shows a requirement for evidence of 3 years’ continuance.  Freddie Mac on the other hand has two different approaches. One approach is if you have received royalty income for one year, and the other approach is if you have received royalty income for […]

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Fannie Mae – Voluntary Debt: A non-occupant co-signor disclosed that she voluntarily pays half of a mortgage for the home she lives in, even though she is not obligated on the mortgage. Does this debt need to be counted?

Answer: Because this expense is voluntary and not actually a debt for which your non-occupant co-borrower is liable, it is not necessary to list any housing expense on the 1003.  [Article Published in Question & Answer Issue – December 25, 2018] Copyright © 2018 – Mortgage Currentcy – All Rights Reserved

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USDA – Credit Lines – Deferred Student Loans: Will USDA allow deferred student loan debts to be counted as a tradeline? NEW MTP™ – USDA – What Counts as a Non-Traditional Tradeline?

Answer: Unfortunately, deferred student loans without 12 months of repayment history are not eligible tradelines to validate credit. Here is what the regulations state… Confirm the applicant has at least two eligible tradelines reported to the credit bureau.  The tradeline may be open, closed and/or paid in full by the applicant. Eligible tradelines include: Loan […]

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FHA – FHA Expected Income – Relocation: Can we use the income when a client is transferring with the same company, but different job, and will not have a paycheck prior to closing?

Answer: FHA would allow the new income to be used for qualifying per their Expected Income guideline below.  If you can comply with this guideline, then the income should be acceptable. Reference: 4000.1, II, A, 4, c xii (L) Expected Income (TOTAL) (1) Definition:  Expected Income refers to income from cost-of-living adjustments, performance raises, a new job, […]

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Compliance – Non-Profit Donations: Is it legal to advertise that a certain portion of our profits go to a non-profit organization?

Answer: This is a complex issue, so we will do our best to add some color to this to help you make your decision. Ultimately, as with any legal issue, we strongly recommend that you discuss your final decision with your legal counsel prior to implementation. There are two sets of laws that need to […]

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