Subject: Overtime and Bonus Income -
tip of the day
Good Morning and HAPPY FRIDAY!
Today is Friday, January
13, 2012
All wholesale staff is
available
Current turn times are 24
hours or less!
Tip of the
day- Overtime and Bonus
4155.1 4.D.2.b Overtime
and Bonus Income
Overtime and bonus income
can be used to qualify the borrower if he/she has received this income for the
past two years, and it will likely continue. If the employment verification
states that the overtime and bonus income is unlikely to continue, it may not
be used in qualifying.
The lender must develop
an average of bonus or overtime income for the past two years. Periods of
overtime and bonus income less than two years may be acceptable, provided the
lender can justify and document in writing the reason for using the income for
qualifying purposes.
Reference: For more information on
earning trends for overtime and bonus income, see HUD 4155.1 4.D.2.c.
4155.1 4.D.2.c Overtime
and Bonus Income Earning Trend
The lender must establish
and document an earnings trend for overtime and bonus income. If either type of
income shows a continual decline, the lender must document in writing a
sound rationalization for including the income when qualifying the borrower.
A period of more than two
years must be used in calculating the average overtime and bonus income if the
income varies significantly from year to year.
Thank
You!
Neil
Johnson
Gateway
Mortgage Group
National
TPO Operations Manager
4201
N. State Hwy 161
Irving,
TX 75038
Office:
972-908-3390 ext. 118
fax#
918-858-8392