B3-3.4-13, Royalty Payment Income (03/04/2026)

The lender must obtain evidence of the income amount using:

• a royalty contract, agreement, or statement confirming amount, frequency, and duration of the income; and
• the borrower’s most recent signed federal income tax return, including the related IRS Form 1040, Schedule E.

Note: If royalty income is not reported on the most recent federal income tax return, the current receipt of income for the most recent 12 months must be documented using sources including, but not limited to:

• bank statements,
• canceled checks, or
• evidence of other electronic receipt of payments.