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Subpart B3, Underwriting Borrowers
Underwriting Borrowers Table of contents
- Chapter B3-1, Manual Underwriting
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Chapter B3-2, Desktop Underwriter (DU)
- B3-2-01, General Information on DU
- B3-2-02, DU Validation Service
- B3-2-03, Risk Factors Evaluated by DU
- B3-2-04, DU Documentation Requirements
- B3-2-05, Approve/Eligible Recommendations
- B3-2-06, Approve/Ineligible Recommendations
- B3-2-07, Refer with Caution Recommendations
- B3-2-08, Out of Scope Recommendations
- B3-2-09, Erroneous Credit Report Data
- B3-2-10, Accuracy of DU Data, DU Tolerances, and Errors in the Credit Report
- B3-2-11, DU Underwriting Findings Report
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Chapter B3-3, Income Assessment
- Section B3-3.1, General Income Requirements
- Section B3-3.2, Requirements for Employment-Related Income
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Section B3-3.3, Sources of Employment-Related Income
- B3-3.3-01, Base Income
- B3-3.3-02, Bonus, Commission, Overtime, and Tip Income
- B3-3.3-03, Employment Offers or Contracts
- B3-3.3-04, Housing (Parsonage) and Automobile Allowances
- B3-3.3-05, Military Income
- B3-3.3-06, Mortgage Differential Payments Income
- B3-3.3-07, Restricted Stock Units and Restricted Stock Employment Income
- B3-3.3-08, Seasonal Income
- B3-3.3-09, Temporary Leave Income
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Section B3-3.4, Other Sources of Income
- B3-3.4-01, General Requirements for Other Sources of Income
- B3-3.4-02, Alimony, Child Support, Equalization Payments, or Separate Maintenance
- B3-3.4-03, Annuity, Pension, or Retirement Income
- B3-3.4-04, Boarder Income
- B3-3.4-05, Capital Gains Income
- B3-3.4-06, Employment Related Assets as Qualifying Income
- B3-3.4-07, Foster-Care Income
- B3-3.4-08, Interest and Dividend Income
- B3-3.4-09, Long-term Disability Income
- B3-3.4-10, Mortgage Credit Certificates
- B3-3.4-11, Notes Receivable Income
- B3-3.4-12, Public Assistance Income
- B3-3.4-13, Royalty Payment Income
- B3-3.4-14, Section 8 Housing Choice Voucher Homeownership Program Payments
- B3-3.4-15, Social Security Income
- B3-3.4-16, Trust Income
- B3-3.4-17, Unemployment Benefits Income
- B3-3.4-18, VA Benefits Income
- B3-3.4-19, Schedule K-1 Income <25% Ownership
- Section B3-3.5, Self-Employment Income
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Section B3-3.6, Self-Employment Documentation Requirements for an Individual
- B3-3.6-01, General Information on Analyzing Individual Tax Returns
- B3-3.6-02, Income Reported on IRS Form 1040
- B3-3.6-03, Income or Loss Reported on IRS Form 1040, Schedule C
- B3-3.6-04, Income or Loss Reported on IRS Form 1040, Schedule D
- B3-3.6-05, Income or Loss Reported on IRS Form 1040, Schedule E
- B3-3.6-06, Income or Loss Reported on IRS Form 1040, Schedule F
- B3-3.6-07, Income or Loss Reported on IRS Form 1065 or IRS Form 1120S, Schedule K-1
- Section B3-3.7, Self-Employment Documentation Requirements for a Business
- Section B3-3.8, Rental Income
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Chapter B3-4, Asset Assessment
- Section B3-4.1, General Asset Requirements
- Section B3-4.2, Verification of Depository Assets
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Section B3-4.3, Verification of Non-Depository Assets
- B3-4.3-01, Stocks, Stock Options, Bonds, and Mutual Funds
- B3-4.3-02, Trust Accounts
- B3-4.3-03, Retirement Accounts
- B3-4.3-04, Personal Gifts
- B3-4.3-05, Gifts of Equity
- B3-4.3-06, Grants and Lender Contributions
- B3-4.3-07, Disaster Relief Grants or Loans
- B3-4.3-08, Employer Assistance
- B3-4.3-09, Earnest Money Deposit
- B3-4.3-10, Anticipated Sales Proceeds
- B3-4.3-11, Trade Equity
- B3-4.3-12, Rent-Related Credits
- B3-4.3-13, Sweat Equity
- B3-4.3-14, Bridge/Swing Loans
- B3-4.3-15, Borrowed Funds Secured by an Asset
- B3-4.3-16, Credit Card Financing and Reward Points
- B3-4.3-17, Personal Unsecured Loans
- B3-4.3-18, Sale of Personal Assets
- B3-4.3-19, Cash Value of Life Insurance
- B3-4.3-20, Anticipated Savings and Cash-on-Hand
- B3-4.3-21, Borrower's Earned Real Estate Commission
- Section B3-4.4, DU Requirements for Asset Assessment
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Chapter B3-5, Credit Assessment
- Section B3-5.1, Credit Scores
- Section B3-5.2, Credit Reports
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Section B3-5.3, Traditional Credit History
- B3-5.3-01, Number and Age of Accounts
- B3-5.3-02, Payment History
- B3-5.3-03, Previous Mortgage Payment History
- B3-5.3-04, Inquiries: Recent Attempts to Obtain New Credit
- B3-5.3-05, Credit Utilization
- B3-5.3-06, Authorized Users of Credit
- B3-5.3-07, Significant Derogatory Credit Events — Waiting Periods and Re-establishing Credit
- B3-5.3-08, Extenuating Circumstances for Derogatory Credit
- B3-5.3-09, DU Credit Report Analysis
- Section B3-5.4, Nontraditional Credit History
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Chapter B3-6, Liability Assessment
- B3-6-01, General Information on Liabilities
- B3-6-02, Debt-to-Income Ratios
- B3-6-03, Monthly Housing Expense for the Subject Property
- B3-6-04, Qualifying Payment Requirements
- B3-6-05, Monthly Debt Obligations
- B3-6-06, Qualifying Impact of Other Real Estate Owned
- B3-6-07, Debts Paid Off At or Prior to Closing
- B3-6-08, DU: Requirements for Liability Assessment
