Fannie Mae Enhances Income Calculator For Self-Employed Borrowers

Fannie Mae enhanced its Income Calculator tool to give self-employed borrowers a leg up.

The new and improved calculator is now available at for lender use at no additional cost. It is also built into CoreLogic’s Income Analyzer service and PointServ’s Digitally Sourced Data service.

It builds on the GSE’s existing Income Calculator, introduced in 2023, which automates the calculation of self-employment income during the underwriting process.

It uses tax return data to identify income using Selling Guide requirements, then returns a monthly qualifying income amount, plus recommended actions to help lenders avoid document and calculation mistakes.

“Whether through our new web-based user interface or through an integrated technology service provider, Fannie Mae’s Income Calculator simplifies the process of underwriting the qualifying income of self-employed borrowers, which traditionally has been a challenging and time-consuming operation for lenders,” said Mark Fisher, Vice President of Single-Family Credit Risk Solutions. 

“With the launch of our new web interface, originators now can select the solution that best aligns with their processes and meets their needs, while saving time and improving certainty in the quality of the loan.”

About 10% of American workers are self-employed and are increasingly looking for home loans. These borrowers have to provide more documentation proving their income and debt levels than a typical homebuyer. Though it may require more work upfront, these buyers are often still able to qualify.

“In all cases, the basic criteria to get approved are the same: You need to have a good credit history, sufficient liquid available assets, and a history of stable employment,” Paul Buege, president and CEO of Inlanta Mortgage, told Bankrate.

Fannie Mae says it regularly identifies defects resulting from inaccurate income calculation or documentation in its post-purchase loan quality reviews. Its Income Calculator can reduce these defects and the risk of repurchase by giving lenders a validated income amount.

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