Overview
Fannie Mae provides a tool called the Income Calculator. This tool helps lenders figure out if you make enough money to qualify for a loan. You can use this tool whether your loan is being processed manually or with the help of Fannie Mae’s automated system, DU.
Findings Report
After using the Income Calculator, there’s a report called the Findings Report. This report shows how your qualifying income was calculated. Lenders must write down their income calculation analysis, and this report can be used for that purpose. They have to keep a copy of this report in your loan file. This is similar to other forms where they break down how much money you make and spend.
Technology Service Provider
Lenders have the option to use technology approved by Fannie Mae. This technology takes information from your tax returns and fills in the necessary parts of the Income Calculator automatically. This makes the process faster and reduces mistakes in entering your income information.
Representations and Warranties Enforcement Relief
If the lender uses the Income Calculator and does not claim you make more than what the calculator says, they can get some protection. This protection is about the accuracy of your income calculation. However, lenders still need to make sure all the information they put in is true. There’s a specific section, “A2-2-04, Limited Waiver and Enforcement Relief of Representations and Warranties,” that gives more details on this protection.
Additional Requirements
For loans using the Income Calculator, lenders need to follow extra rules:
– They must check that the tax returns you provide are not too old, following the “B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns” guideline.
– They need to make sure every piece of information they submit to the Income Calculator is correct, complete, and matches what’s on your tax returns.
– If there’s any information that doesn’t match or seems wrong, they have to look into it and fix it.
– They also have to follow all the other rules in the Fannie Mae Selling Guide, including any messages or instructions from DU, if they used it.
Recent Related Announcements
Fannie Mae makes announcements that might affect how the Income Calculator is used. Here are the latest announcements related to this topic:
– On April 02, 2025, there was Announcement SEL-2025-02.
– On December 13, 2023, there was Announcement SEL-2023-11.
These announcements could include updates or changes to how the Income Calculator should be used or how income calculations are done.
References
For more details, visit Income Calculator of the Fannie Mae Selling Guide.