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Announcement 2020-073 Conventional Self-Employed Updates

Effective for applications received dates on or after June 11, 2020, the following guidelines apply for self-employed borrowers and are based on direction announced in Fannie Mae LL-2020-03 and Freddie Mac Bulletin 2020-19.

Temporary Guidance for Self-Employed Borrowers

 

Effective for applications received dates on or after June 11, 2020, the following guidelines apply for self-employed borrowers and are based on direction announced in Fannie Mae LL-2020-03 and Freddie Mac Bulletin 2020-19.

 

Extra due diligence must be practiced to understand the impact of the pandemic on a borrower’s business revenue and expenses and to determine stability and continuance of income. Each business and business situation will be different. This includes borrowers who receive a large portion or all of the income from commission or variable income. Their income may be impacted in similar ways as self-employed borrowers.

 

To read the entire announcement, click here.