1 MIN READ
Published July 19, 2024
In a move to streamline the mortgage process for self-employed individuals and those with nontraditional income sources, Fannie Mae has unveiled a convenient web-based income calculator tool. This free resource aims to simplify the often complex task of assessing the income of mortgage applicants, providing greater efficiency and accuracy for lenders.
Mark Fisher, vice president of single-family credit risk solutions at Fannie Mae, emphasized the significance of this development, stating, “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.”
The tool, which is accessible through Fannie Mae’s website, offers flexibility for mortgage originators, allowing them to choose the solution that best fits their workflow. This versatility is expected to save time and enhance the quality of loans processed.
Introduced last year, the income calculator has been updated to include a web-based option, addressing the specific needs of borrowers with nontraditional income streams. By automating the calculation process, Fannie Mae aims to reduce the risk of loan defects, ultimately benefiting both lenders and borrowers.
According to Fannie Mae, self-employed individuals constitute about 10% of the U.S. workforce and represent a growing segment of loan deliveries. Accurate income calculation is crucial in mitigating loan defects, which can lead to post-purchase quality reviews. With the Fannie Mae Income Calculator, lenders can access validated income data, enhancing the underwriting process.
This initiative aligns with Fannie Mae’s commitment to innovation and efficiency in the mortgage industry, providing accessible tools to meet the evolving needs of borrowers and lenders alike. As the housing market continues to evolve, initiatives like these are essential in ensuring a smooth and transparent mortgage process for all parties involved.