Fannie Mae has announced new enhancements to its Income Calculator tool that will help mortgage professionals serve the growing number of mortgage applicants who are self-employed and don’t have traditional sources of income. The new web interface provides an additional, free avenue to access Fannie Mae’s existing Income Calculator functionality, which the company introduced in 2023 to help lenders streamline their processes and reduce loan defects.
“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 Fannie Mae’s 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.”
Self-employed borrowers represent approximately 10% of the U.S. workforce and a growing number of Fannie Mae loan deliveries, the company stated. Incorrect income calculation and documentation can cause defects, which are identified in Fannie Mae’s post-purchase loan quality reviews. With the Fannie Mae Income Calculator, lenders receive an accurate, validated income amount for use in the underwriting process.
Fannie Mae stated that their Income Calculator is a service that uses tax return data to calculate monthly income using current Selling Guide requirements before the lender submits the loan casefile to Fannie Mae. Income Calculator calculates and returns the monthly qualifying income amount along with actionable messages that help originators avoid common calculation and documentation mistakes. Originators can access Income Calculator through Fannie Mae’s web interface, CoreLogic’s Income Analyzer service or PointServ’s Digitally Sourced Data service, with additional integrated technology service providers coming soon.
For more information, visit https://www.fanniemae.com/.
