Overview

To support LoanBeam® Income’s (LBI) latest integration with Fannie Mae®’s Income Calculator, we’ve made some updates to the FNMA SEI 1084 workbook. These changes are designed to capture additional income and business data and expanded system capabilities to facilitate the communication of relevant application data.

*As of this writing, integrated eligible income is any income derived from Schedule C (Sole Proprietorship). Income derived from Form 1065 (Partnership) will be available on December 9th, 2024. Income derived from 1120S (S-Corporation), 1120 (Corporation), and Schedule E (Rental) is expected to be available in 2025. The legacy non-integrated FNMA R&W process remains available at this time.

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FNMA SEI 1084 Workbook changes:

Summary Sheet Tab

Addition of a new “DU Case File ID” field

This manual field, highlighted in blue, is used to capture Fannie Mae’s Desktop Underwriter® (DU®) Casefile ID for the purpose of associating Income Calculator usage with DU and eliminating the requirement to deliver loans with Special Feature Code (SFC) 777.

Important note!! This field is used to associate applicable income to the loan’s DU Casefile, but is not required to assess income with FNMA’s Income Calculator.

Addition of new “Send eligible income data to FNMA for R&W check” field

Selecting “Yes” in this dropdown authorizes LoanLogics® to send all eligible* income data to Fannie Mae for the purposes of R&W assessment. Income may be sent to FNMA’s income calculator repeatedly before recording the “DU Case ID” field.

Important note! Once the user has indicated that he/she is sending data to FNMA, all manual overrides are disabled and any data entered the fields will be ignored from the set of data being sent to FNMA, as indicated in the red, bold note below the “Yes” choice.

Removal of the “Monthly Self-Employed Income” sub-total.

To reduce the confusion as to what income is eligible for FNMA’s R&W check, the decision was made to deprecate the so-called “Monthly Self-Employment Income” sub-total. Each business entity (i.e., Schedule C, Partnership, S-Corp, Corp) is assessed individually for FNMA R&W either with the new integrated connection or the legacy “non-integrated” process (i.e., using special feature code).

Schedule C Tab

Addition of an “Additional FNMA Rep & Warrant Data” section.

The Schedule C tab has a new “Additional FNMA Rep & Warrant Data” section for recording important data for R&W assessment. The following is a description of those changes.

Business History Attestations sub-section
1. This section is designed to capture important FNMA eligibility data for the business. Here is a summary of each:
  1. DU Case ID – The value that was entered on the Summary Sheet for “DU Case ID.” This cell is read only, and displays the value entered on the Summary Sheet.
  2. Include Business in DU Casefile? – This indicates to LBI whether the user would like to include this business in the loan’s DU Casefile, regardless of whether the DU Casefile ID is present.

Important note! If income has been transmitted to DU, but the user would like to remove it, the user should reupload the excel workbook with the DU number completed AND this cell set to “No.” This will indicate to FNMA that the data should be removed from the loan’s DU Casefile.

1. 1. Years to Include – This dropdown allows the user to select which tax years to transmit to FNMA for R&W assessment and/or DU Casefile. For example, if two years have been uploaded, that will be the default. Please note, if FNMA’s Income Calculator or DU suggests that only one year is needed for a certain business, this is the way the user would restrict the transmission to Fannie to one year. This field is unavailable if “Include Business in DU Casefile” is set to “No.”
  2. Employment Start Date – This value is not found on the tax returns, and is critical to assessing R&W. This is the date that the borrower obtained ownership of the business, which may be different from the business established date. For example, if a business started in 10/01/2005, was sold to the borrower in 01/15/2023, and your application is happening in 01/01/2024, then the business established date would be 10/01/2005, but the “Employment Start Date” would be “01/15/2023” and ownership would be less than 2 years.
  3. There appears to be less than 2 years of self-employment. Which selection best describes the self-employment history? – If the employment start date is less than 2 years to the day the workbook is being reviewed, then this field will appear. It is used to communicate to FNMA relevant employment history as it relates to running a/the business.
  4. Has the borrower owned the business for more than 5 consecutive years? – Used to communicate business history that may or may not show up in the tax documents.
Additional Data Validation Attestations Sub-section
1. This section is used to capture additional information sourced from the tax documents or borrower conversation. These fields are separated by tax documents and tax year.

Important note! Rows may be blank if no data exists, but lenders must ensure the information submitted to the 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.

Process Flow Updates

To accommodate the new integrated R&W process LoanLogics® has introduced some expanded capabilities of the LBI tool. They include:

Uploading an edited FNMA SEI 1084 workbook
- Users may now upload an edited workbook to LBI via the LoanBeam® dashboard (secure.LoanBeam®.com) or LOS integration and if the “Additional FNMA Rep & Warrant Data” value is set to “Yes” then LBI will automatically extract, bundle, and send relevant income and business data to FNMA.
- Designed to capture all relevant data entered by the user for the purposes of R&W assessment.
Retrieving the FNMA Income Calculator PDF Findings Report for eligible businesses
- Using either the LoanBeam® dashboard (secure.LoanBeam®.com) or LOS integration, users may use the “outputs” folder (where completed workbooks are found) to access a .zip file containing Income Calculator’s Findings Report (PDF). Each submission to FNMA will result in a new .zip file.
Important note! A single FNMA SEI 1084 workbook may result in multiple Income Calculator Findings Reports as a single set of tax documents may include many eligible businesses. This process allows users to simplify the upload and data completion steps using LBI, but still accommodate FNMA’s requirement of separating income by business. LBI handles the busy work!