MPF Announcement 2024-04

MPF Traditional – Income Updates

Effective Date: Immediately (unless otherwise noted)

Updated the following income requirements:

• Clarified that the income of a Borrower who has less than two-year history of self-employment may be considered as long as the non-self-employment income earned during that two-year history meets the requirements of the Selling Guide and the Borrower’s most recent signed personal and business federal income tax returns reflect a full year (12 months) of self-employment income from the current business.

   

• Clarified the employment offers or contract policy to reinforce that an employment offer or contract for future employment from a family member or interested party to the transaction is prohibited.

For additional information see MPF Traditional Selling Guide sections 5.4.1.2 Length of Self-Employment, 5.4.1.3 Verification of Income, and 5.3.9.7 Employment Offers or Contracts.