Solution Overview:
FNMA SEI (Self-Employed Income) 1084 is a Template that captures Fannie Mae’s Underwriting Guidelines.
Data from self-employed borrower tax returns is systematically populated into the Template to automatically calculate income.
LoanBeam’s FNMA SEI 1084 Template is not directly integrated with Desktop Underwriter® (DU®) so the lender must manually enter the calculated self-employment income amount into the base income field in DU.
Rep & warrant relief is provided for the accuracy of the amount of self-employment income calculated by the Template for the following business structures reported on tax returns:
• Sole Proprietorship (Schedule C)
• Partnership (Schedule K1’s and Form 1065)
• S. Corp (Schedule K1’s and Form 1120S)
• Corporation (Form 1120)
Customer Benefits:
Lenders who use LoanBeam’s FNMA SEI 1084 Template will benefit from a consistent and reliable process to calculate self-employment income aligned with Fannie Mae’s Selling Guide so that they can easily serve more self-employed borrowers.
Rep & warrant relief on the accuracy of the calculation of the amount of self-employment income is offered when:
• The lender does not make manual overrides to the income amount calculated by FNMA SEI 1084, and
• The non-modified income amount is accurately entered into Desktop Underwriter® (DU®)
How it Works - The high-level process for lenders follows:
Leverage LoanBeam’s FNMA SEI 1084 Template to calculate self-employment income using borrower-provided tax returns.
Manually enter the non-modified income amount into the base income field in DU.
Place the FNMA SEI 1084 Template generated by LoanBeam in the loan file in an accessible file format (PDF, Excel) for the purpose of validating enforcement relief.
Ensure that the self-employment income is eligible*; comply with all DU messages; and deliver the loan with SFC 777.
Using LoanBeam’s FNMA SEI 1084 Template provides efficiency through a systematic process that automates the self-employment income calculations by leveraging the borrower’s tax returns. And provides confidence in knowing that the resulting income calculations are aligned with Fannie Mae policy guidelines
*To confirm self-employment income eligibility the lender must confirm minimum history is met; the business is stable (unless the borrower meets the conditions to waive business tax returns); and in the case of business income, the income is distributed to the borrower or the business has adequate liquidity to support withdrawal of business earnings.