Fannie Mae Expands Income Calculator Tool with Free, Web-based Option for Loan Originators
Fannie Mae has expanded its Income Calculator tool to help mortgage professionals assess self-employed borrower income accurately and quickly. The web-based tool is free and available on Fannie Mae's website, allowing lenders to streamline underwriting processes and reduce loan defects. The new enhancement aims to serve the increasing number of self-employed mortgage applicants in the U.S. with a user-friendly interface for income calculation.
Enhanced Income Calculator tool helps mortgage professionals accurately assess self-employment income.
Web-based tool is free for lenders, providing easy and immediate calculation of borrower income.
Improves underwriting process for self-employed borrowers, reducing loan defects and risk of loan repurchase.
Lenders can choose between the web interface or authorized third-party technology service providers for income calculation.
Income Calculator uses tax return data to calculate monthly income per current Selling Guide requirements.
Incorrect income calculation and documentation can lead to defects in loan quality reviews.
Challenges in underwriting self-employed borrower income remain a concern for lenders.
Defects identified post-purchase may result in loan repurchase, impacting lender profitability.
New Enhancement Calculates Borrower Self-Employment Income with Speed and Certainty
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. Lenders also still have the option to partner with one of Fannie Mae's authorized third-party technology service providers to automate the calculation of self-employment income streams during the underwriting process. With either solution, the lender benefits from an accurate income calculation and the resulting reduced risk of loan repurchase.
"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 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
Income Calculator is a Fannie Mae-hosted 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.
Lenders are encouraged to contact their Fannie Mae representative to learn how to get started with Income Calculator and other Fannie Mae technologies, products, and resources.
Fannie Mae remains committed to expanding opportunities for those who are ready to purchase a home and maintain a mortgage. Recent innovations include:
- New capabilities in the DU validation service that enable lenders to automatically validate borrower assets, income, and employment using a single asset report, improving the mortgage origination process for lenders and homebuyers.
- An improved pre-qualification experience through the DU early assessment enhancement to help lenders determine homebuyer preparedness and mortgage options earlier without the impact of a hard credit check on the consumer.
- A new
$2,500 - Fannie Mae's award-winning HomeView® and HomeView en Español, providing consumers and first-time homebuyers with educational tools and information about financial literacy and homeownership.
About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit:
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FAQ
How can mortgage professionals access Fannie Mae's Income Calculator tool?
Mortgage professionals can access Fannie Mae's Income Calculator tool through the web interface on FannieMae.com or via authorized third-party technology service providers.
What percentage of the U.S. workforce are self-employed borrowers?
Self-employed borrowers represent approximately 10% of the U.S. workforce.
What are the benefits of using Fannie Mae's Income Calculator for lenders?
Fannie Mae's Income Calculator provides accurate income calculation and reduces the risk of loan repurchase for lenders.
How does the Income Calculator tool streamline the underwriting process for lenders?
The Income Calculator simplifies the process of underwriting self-employed borrower income, saving time and improving loan quality.
What new capabilities have been introduced by Fannie Mae to assist homebuyers?
Fannie Mae has introduced new capabilities in the DU validation service, pre-qualification enhancements, and a $2,500 credit for qualified low-income borrowers through the HomeReady® product.
