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Bulletin 2020-044 Asset Income Modeler (AIM) Updates

We are providing the following guidance announced in Freddie Mac Bulletin 2020-23 that clarifies the temporary requirements in NewRez Announcement 2020-042 for underwriting borrowers with self-employment income are applicable to mortgages originated with LPA AIM using tax return data (i.e., AIM for self-employed).

AIM updates with Loan Product Advisor using tax return data

 

We are providing the following guidance announced in Freddie Mac Bulletin 2020-23 that clarifies the temporary requirements in NewRez Announcement 2020-042 for underwriting borrowers with self-employment income are applicable to mortgages originated with LPA AIM using tax return data (i.e., AIM for self-employed).

 

The following steps will aid in underwriting of self-employed borrowers using LPA AIM:

 

  1. Upload any income documentation obtained for analysis to the participating third-party service provider. For mortgages with application dates on or after June 11, 2020, this includes the documentation used to meet temporary requirements.
  2. If a discrepancy is found between the information reflected on the tax returns and other documentation collected (e.g., income reflected on the unaudited year-to-date profit and loss statement and supporting business asset statements is not consistent with the income on the uploaded tax returns), then update the information in the Income Calculation Report and upload the updated report to the service provider.
  3. Update the information in the Loan Product Advisor and (re)submit the mortgage for assessment of representation and warranty relief eligibility.

 

Previously Announced Temporary Guidance and Resources

 

For additional information, below is the link to the Freddie Mac Frequently Asked Questions

 

Remember that NewRez is not adopting all flexibilities in the Freddie Mac announcements, therefore some guidelines in their announcements and FAQ may not apply.

 

Correspondent

 

The product profiles will not be updated with the temporary guidelines related to COVID-19 (with the exception of credit score updates). Refer to the following previously issued announcements.

 

  • CF2020-018 COVID-19 (3/25/20)
  • CF2020-015 Suspension of Tax Transcripts (3/30/20)
  • CF2020-019 Correspondent Attestation and Forbearance Attestation (4/3/20)
  • CF2020-024 COVID-19 Additional Conforming Updates (4/9/20)
  • CF2020-027 COVID-19 Conventional Updates – Property (4/17/20)
  • CF2020-042 Conventional Self-Employed Updates (6/11/20)