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On Friday November 22nd, 2024, LoanBeam introduced an updated FNMA workbook. Beginning on Monday November 25th, 2024, clients can choose to utilize the upgraded workbook to communicate with Fannie Mae’s Income Calculator. The integrated communication and enhanced data capture now available via LoanBeam is designed to provide an improved Rep & Warranty (R&W) experience.
What types of income are eligible to participate in the integrated Fannie Mae R&W?
- Schedule C (sole proprietorship) income is eligible to participate as of 11/25/24
- Form 1065 (Partnership) income is eligible to participate as of 12/09/24
- 1120S (S-Corporation), 1120 (Corporation), and **Schedule E (Rental)** will follow in 2025
Can I still use the non-integrated FNMA R&W process after this update?
- Yes. The non-integrated FNMA R&W process will remain available to our clients after this update. This process can be used for the following business structures:
- Sole Proprietorship (Schedule C)
- Partnership (Schedule K1’s and Form 1065)
- S. Corp (Schedule K1’s and Form 1120S)
- Corporation (Form 1120)
Does this update affect my service cost?
- Your service costs will remain the same.
Do I have to change how I upload documents to LoanBeam?
- No. No changes are needed in how documents are uploaded to LoanBeam to utilize this functionality.
How are R&W results returned?
- A separate PDF will be returned to the same place the client goes to retrieve their LB workbook.
- R&W is assessed by business. Meaning it is likely to have multiple PDFs in the same output folder.
- This PDF report should be stored in your loan file if you plan to deliver the loan to Fannie Mae.
Can I upload an edited FNMA SEI 1084 workbook?
- Yes, edited workbooks can be uploaded via the LoanBeam dashboard or LOS integration.
- If the “Additional FNMA Rep & Warrant Data” section is enabled, relevant data will be sent to FNMA automatically.
How can I remove income data from the DU Case File?
- Re-upload the workbook with:
- The DU Case File ID completed.
- The “Include Business in DU Case File?” field set to “No.”
What are the benefits of using FNMA Income Calculator?
- Income Calculator can help lenders retain their competitive advantage by increasing processing efficiency and enabling a superior borrower experience by providing a simple and easy-to-follow approach to calculating qualifying income for self-employed borrowers.
Are training materials available for the LB integration with FNMA Income Calculator?
- Yes!
- Our updated User Guide and Training Video can be found on our training page
- You can also review our Nov2024 Release notes and Dec2024 Release notes
Can I review the data that is being sent to FNMA?
- As of 12/09/24, a new CSV file containing all data sent to FNMA will be available with the FNMA PDF reports, in the same place the client goes to retrieve their LB workbook.
- This file may be useful in validating tax return data extraction.
Are there any self-employment income scenarios Income Calculator cannot evaluate?
Income Calculator cannot evaluate self-employment income when:
- The most recently filed tax return reflects less than 12 months of earnings,
- The employment start date is unknown,
- The business tax returns reflect rental income, (coming soon)
- The borrower owns less than 25% of the business, (coming soon)
- The borrower has multiple Schedule Cs for one business in the same year and has merged them to a single Schedule C in the other year, (coming soon)
- Two years of tax returns are provided, and the business structure changed from one year to the next, such as from a Partnership to an S-Corporation,
- The business operates on a non-calendar fiscal year,
- The borrower has less than 24-month history of self-employment with the business, and the prior employment or occupation history is not consistent as described in the Selling Guide, or
- The tax returns are more than three years old.
In addition, Income Calculator does not currently evaluate other types of non-self-employment income which may be supported by tax returns (income from dividends and interests from Schedule B; capital gains from Schedule D; rent, trust and royalty income from Schedule E; and farm income from Schedule F).
What is required to receive rep & warrant relief for the self-employment income calculation?
The lender must meet the requirements described in the Selling Guide, which include:
• Ensuring the information submitted to Income Calculator is accurate and complete, including investigation of any contradictory or conflicting information between the tax return documents and the TSP submission data or any other file documentation
provided by the borrower.
• Confirming the amount of self-employment income entered in DU (if any) is not more than the amount of income calculated by the tool.
• Retaining a copy of the Income Calculator Findings Report in the loan file.
Notes:
- Income Calculator evaluations are performed at the business level, not at the loan level. You may need multiple Income Calculator evaluations for a loan file
- In addition, the last Income Calculator request should contain the delivery DU Casefile ID and the lender must ensure the Uniform Residential Loan Application (URLA) correctly and separately identifies each self-employed business. Lenders should not commingle multiple self-employment income sources on the URLA
Does LoanLogics, Inc. (the FNMA TSP) send non-public personal information (NPI) to Income Calculator?
- No. Fannie Mae does not collect the borrower’s name, borrower’s address, social security number, business address, business EIN, or any other NPI from the TSP. A reference name (which may be the business name, loan number, or any other string of characters) may be optionally provided as a convenience to the user in reconciling the Findings Report to the loan file.
What should I do if I have questions?
- Lenders can visit the LoanBeam client portal Here or contact the LoanBeam support team Here.
- If customers require Fannie Mae support, they may contact the FNMA Technology Support Center at
1-800-2FANNIE (press 1 then 1) or via email at [email protected]
