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B3-3.1-10, Income Calculator (12/13/2023)


Fannie Mae offers use of the  Income Calculator as an optional tool to assist lenders in calculating qualifying income that is documented using tax returns. This tool can be used for loans underwritten manually or through DU.

Findings Report

The Income Calculator Findings Report can be used to satisfy the requirement for the lender to prepare a written analysis of their evaluation for self-employed borrowers, such as Fannie Mae's Cash Flow Analysis ( Form 1084), Comparative Income Analysis ( Form 1088) or a similar form. A copy of the Findings Report must be maintained in the loan file.

Technology Service Provider

The lender can choose to use a Fannie Mae-approved technology service provider to extract data from tax returns and auto-populate the required fields within  Income Calculator.

Representations and Warranties Enforcement Relief

When the amount of qualifying income being used by the lender is not more than the amount of income calculated by Income Calculator, enforcement relief from representations and warranties on the accuracy of the income calculation may be provided but lenders remain responsible for the accuracy of the information submitted. See Enforcement Relief of Representations and Warranties for Loans with Income Calculated by Income Calculator in  A2-2-04, Limited Waiver and Enforcement Relief of Representations and WarrantiesA2-2-04, Limited Waiver and Enforcement Relief of Representations and Warranties for additional details.

Additional Requirements

For loans that use the qualifying income amount calculated by  Income Calculator, the lender must also comply with the requirements in the following table.

Additional Lender Requirements
  Confirm that tax returns meet the allowable age of documents requirements in B1-1-03, Allowable Age of Credit Documents and Federal Income Tax ReturnsB1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns.
  Ensure all information submitted to Income Calculator is accurate, complete, and reflects the information on the tax returns being used to document the qualifying income.
  Investigate and resolve any contradictory or conflicting information that may impact the accuracy of the income calculation.
  Comply with all other Selling Guide requirements, including DU messages, when applicable.


Recent Related Announcements

The table below provides references to recently issued Announcements that are related to this topic.

Announcements Issue Date
Announcement SEL-2023-11 December 13, 2023