Income Series Part 2 December 2017 - Genworth Financial...Military Income- Freddie Mac Military...
Transcript of Income Series Part 2 December 2017 - Genworth Financial...Military Income- Freddie Mac Military...
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Reviewing and Calculating Military Income
Income Series Part 2
December 2017
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2Review and Calculate Military Income
Objective
Understand the different types of income and the Leave and Earning
Statement (LES)
– Military Status
– Documentation Requirements
– Documentation Review
– LES Review Reference Guide
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3Review and Calculate Military Income
The Mortgage Application 1003/65
https://www.fanniemae.com/content/news/urla-announcement-september-2017.pdf
https://www.fanniemae.com/content/news/urla-announcement-september-2017.pdf
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Fannie Mae
4Review and Calculate Military Income
https://www.fanniemae.com/singlefamily/uniform-residential-loan-application
https://www.fanniemae.com/singlefamily/uniform-residential-loan-application
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Freddie Mac
5Review and Calculate Military Income
http://www.freddiemac.com/singlefamily/sell/ulad.html
http://www.freddiemac.com/singlefamily/sell/ulad.html
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6Review and Calculate Military Income
https://www.fanniemae.com/singlefamily/uniform-residential-loan-application
https://www.fanniemae.com/singlefamily/uniform-residential-loan-application
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New URLA (1003)
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Employer
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Military Status
Enlisted
– Enlistment
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Officer
– Non-Commissioned (NCO)
– Commissioned
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For Borrowers Who Are Active-Duty Members Of The United States Armed Forces, A
History Of Military Employment Is Not Required For The Employment To Be
Considered Stable
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Military Employer
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http://www.dfas.mil/
http://www.dfas.mil/
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Pay Codes For LES
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http://www.dfas.mil/
http://www.dfas.mil/
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Military Compensation
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http://militarypay.defense.gov
http://militarypay.defense.gov/
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Military Compensation
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http://militarypay.defense.gov
http://militarypay.defense.gov/
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Military Income- Fannie Mae
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https://www.fanniemae.com
https://www.fanniemae.com/content/guide/selling/b3/3.1/03.html
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Verification of Military Income- Fannie Mae
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,When a Borrower is in the Military, in lieu of a Verbal or Written VOE
the Lender must obtain either
– A Military Leave and Earnings Statement (LES) dated within 30 calendar days
prior to the note date or
– A Verification of employment through the Defense Manpower Data Center
• www.dmdc.osd.mil/appj/mla/
Review and Calculate Military Income
http://www.dmdc.osd.mil/appj/mla/
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Military Income- Freddie Mac
Military income A Borrower who is a member of the United States Armed
Forces in active duty, a history of military employment is not required for the
employment to be considered stable.
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Military Income- Freddie Mac
Military income, entitlements: A Borrower who is a member of the United
States Armed Forces may receive pay entitlements such as flight or hazard
duty, rations, clothing allowance or quarters allowance in addition to base
pay. The Seller may consider entitlements qualifying income if documented
and likely to continue for the next three years.
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Military Income- Freddie Mac
Reserve duty income If the Borrower is a member of a reserve component
of the United States Armed Forces, the Seller may consider the reserve
duty income for qualifying. A history of receipt of one year is required for the
income to be considered stable
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If reviewing a written VOE
Current Military Active-duty
employment base (basic) pay and
entitlement income
Date employment began
Current position
Base (basic) monthly pay
Current monthly entitlement
income (e.g., rations, clothing,
quarters)
Year-to-date earnings with paid
through date
Earnings from most recent one-
year calendar period
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Current Military Reserve or
National Guard income
Date employment began
Current position
Year-to-date earnings with paid
through date
Earnings from most recent one-
year calendar period
Review and Calculate Military Income
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Leave and Earning Statement (LES)
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Name
SS#
Pay Date
YRS SVC
ETS
Period Covered
Entitlements
Allotments
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Fannie Mae Selling Guide
The following table contains examples of income types with and without defined expiration dates. This
information is provided to assist lenders in determining whether additional income documentation may be
necessary to support a three-year continuance. Note that lenders remain responsible for making the final
determination of whether the borrower’s specific income source has a defined expiration date.
ETS- Expiration Term of Service
888888 is indefinite service
16/03/17- Term of Service ends March 17, 2016
https://www.fanniemae.com/content/guide/selling/b3/3.1/01.html
Military Income
https://www.fanniemae.com/content/guide/selling/b3/3.1/01.html
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Military Service
Reenlistment can be
requested up to 1 ½ years
prior to but typically no later
than 90 days of the military
members ETS.
The request to reenlist is not
automatic & must be
approved.
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LES Review- Entitlements
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Base Pay-BAS* Food
-BAH* Housing
:Special Pays Examples Include
– HDP Hardship Duty
– HDIP Hazardous Duty Incentive Pay
– AIP Assignment Incentive Pay
– CZTE Combat Related Special
Compensation
– HFP Hostile Fire Pay/IDP Imminent
Danger Pay
– FSA Family Separation Pay
*Determined by # of dependents, rank, & zip code of home base
http://militarypay.defense.gov/
http://militarypay.defense.gov/
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LES Review- Allotments
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-Review ForLoans
Child Support
-Housing If the military member is
living in on base housing you will
see an allotment here
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LES Review Reference
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http://www.military.com/spouse/military-benefits/money-management/how-to-read-a-military-les-leave-
and-earnings-statement.html
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http://www.military.com/spouse/military-benefits/money-management/how-to-read-a-military-les-leave-and-earnings-statement.html
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Genworth Underwriting Guidelines
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Genworth Rate Express®
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LOS Connections
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Training Tools and Information
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Training Tools and Information
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Additional MI Site Information
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ActionCenter®: 800 444.5664
Your Local Genworth
Regional Underwriter
Your Genworth Sales
Representative
Your Genworth Resources
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Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials. While we strive for
accuracy, we also know that any discussion of laws and their application to particular facts is subject to
individual interpretation, change, and other uncertainties. Our training is not intended as legal advice, and is
not a substitute for advice of counsel. You should always check with your own legal advisors for
interpretations of legal and compliance principles applicable to your business.
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INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE RELATED TRAINING. IN
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THE MATERIALS.
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LES
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