Review and Calculate Military Income...Military Income- Freddie Mac Military income, entitlements: A...
Transcript of Review and Calculate Military Income...Military Income- Freddie Mac Military income, entitlements: A...
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CONFIDENTIAL
Review and Calculating Military
Income
June 2020
Customer Education
Brought to you by: Genworth Customer Development and Process Consulting
0Review and Calculate Military Income
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1Review 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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2Review and Calculate Military Income
The Mortgage Application 1003/65 URLA
https://singlefamily.fanniemae.com/media/4686/display
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Fannie Mae’s URLA Page
Review and Calculate Military Income 3
https://www.fanniemae.com/singlefamily/uniform-residential-loan-
application?utm_source=fanniemae&utm_campaign=best_match
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Freddie Mac’s URLA Page
4Review and Calculate Military Income
http://www.freddiemac.com/singlefamily/sell/ulad.html
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CONFIDENTIAL
https://www.fanniemae.com/singlefamily/uniform-residential-loan-application
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New URLA (1003)
6Review and Calculate Military Income
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Military Status
Enlisted
– Enlistment
7
Officer
– Non-Commissioned (NCO)
– Commissioned
Review and Calculate Military Income
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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Employer
8Review and Calculate Military Income
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Military Employer
9Review and Calculate Military Income
https://www.dfas.mil/
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Active Duty Paydays LES and NPA
10Review and Calculate Military Income
https://www.dfas.mil/MilitaryMembers/payentitlements/2020ACPayDay/
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Pay Codes For LES
11Review and Calculate Military Income
http://www.dfas.mil/
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Military Compensation
12Review and Calculate Military Income
http://militarypay.defense.gov
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Military Compensation
13Review and Calculate Military Income
http://militarypay.defense.gov
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Military Allowances
14Review and Calculate Military Income
https://militarypay.defense.gov/Pay/Allowances/BAS.aspx
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Military Income- Fannie Mae
15Review and Calculate Military Income
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Verification of Military Income- Fannie Mae
16
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
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Military Income- Freddie Mac
17Review and Calculate Military Income
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CONFIDENTIAL
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.
18Review and Calculate Military Income
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CONFIDENTIAL
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
19Review and Calculate Military Income
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CONFIDENTIAL
General tips when 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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CONFIDENTIAL
Leave and Earning Statement (LES)
21Review and Calculate Military Income
Name
SS#
Pay Date
YRS SVC
ETS
Period Covered
Entitlements
Allotments
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22Review and Calculate Military Income
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
Military Income
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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 re-enlist is not
automatic & must be
approved.
23Review and Calculate Military Income
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LES Review- Entitlements
24Review and Calculate Military Income
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/
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CONFIDENTIAL
LES Review- Allotments
25Review and Calculate Military Income
Review For-Loans
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
26Review and Calculate Military Income
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Review and Calculate Military Income 27
Understanding the LES
https://www.dfas.mil/MilitaryMembers/payentitlements/aboutpay/
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Review and Calculate Military Income 28
https://www.dfas.mil/Portals/98/Documents/Military%20Members/Payentitlements/aboutpay/Army
_reading_your_LES.pdf
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LES
29Review and Calculate Military Income
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Genworth Underwriting Guidelines
Review and Calculate Military Income 37
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Genworth Rate Express®
Review and Calculate Military Income 38
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LOS Connections
Review and Calculate Military Income 39
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Training Tools and Information
Review and Calculate Military Income 40
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Training Tools and Information
41Review and Calculate Military Income 41
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Additional MI Site Information
Review and Calculate Military Income 42
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Regional Underwriter
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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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