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Freddie Income Calculation Job Aid. Overview. Freddie Mac requires income documentation on all loans submitted for liquidation . The negotiator is responsible for calculating monthly gross and/or net income of wage earners and self-employed borrowers. . Interim Income Calculator.
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Overview Freddie Mac requires income documentation on all loans submitted for liquidation. The negotiator is responsible for calculating monthly gross and/or net income of wage earners and self-employed borrowers.
Interim Income Calculator Select the type of income you want to calculator from the menu tabs at the bottom of the calculator.
Wage-Earner Income Tab: Income Variance Calculator When completing the income calculator the negotiator should populate their name and SID, the loan number and heritage type.
Wage-Earner Pay Period Calculations Use the information listed in the following slides to calculate mortgagor’s income
Wage-Earner Pay Period Calculations • If wage earner is paid weekly, complete the following steps: • 1. Select weekly from the drop down menu. • Note: There are 7 days between pay statements • 2. Input the gross amount of the check. • 3. Input the check date. • 4. Repeat steps 1 -3 for the net amount. • (Monthly income will automatically calculate)
Wage-Earner Pay Period Calculations • If wage earner is paid bi-weekly, complete the following steps: • 1. Select bi - weekly from the drop down menu. • 2. Input the gross amount of the check. • 3. Input the check date. • 4. Repeat steps 1 -3 for the net amount. • (Monthly income will automatically calculate)
Wage-Earner Pay Period Calculations • If wage earner is paid semi-monthly, complete the following steps: • 1. Select semi-monthly from the drop down menu. • 2. Input the gross amount of the check • 3. Input the check date • 4. Repeat steps 1 -3 for the net amount. • (Monthly income will automatically calculate)
Wage-Earner Pay Period Calculations • If wage earner is paid monthly, complete the following steps: • 1. Select monthly from the drop down menu. • 2. Input the gross amount of the check • 3. Input the check date • 4. Repeat steps 1 -3 for the net amount. • (Monthly income will automatically calculate)
Wage-Earner Pay Period Calculations Repeat the information on the previous slides for each borrower with income on the loan.
Year-to-date Income Calculation • If the income documentation is Pay Statements, complete the following steps: • 1. Input the start date of the income. • 2. Input the pay period end date on the pay statement. • 3. Enter the year to date amount on the pay statement. (the calculator will automatically configure the monthly income) • 4. Repeat steps 1-3 for additional borrowers or employers
Self-Employed Income Tab: Self – Employed Borrower Income Calculation
Self-Employed Income Tab: Self – Employed Borrower Income Calculation • If the income documentation is Profit and Loss (Income) Statement, complete the following steps: • 1. Input company name. • 2. Input the business gross revenue into the Revenue field. • 3. Enter the borrowers percentage of ownership for the business. • 4. Key in all business expenses. • 5. Input the date the Profit and Loss is covering in the start and end date fields.
Rental & Boarder Income Tab: Rental Income Calculation • If the income documentation is Schedule E – Rental Income, complete the following steps: • 1. Input rental income amount. • 2. Select the appropriate occupancy type from the drop down menu. • 3. Enter the borrower’s rental expense. • 4. Key in HOA/Condo Fees (if applicable) • (The calculator will automatically configure the monthly net income)
Other Income Tab: Other Income Calculation • If the income documentation Divorce Degree, Court Order or Benefit Award Letter, complete the following steps: • 1. Input amount received per the award letter or court ordered document. • 2. Select use this income from the drop down menu.