| Author |
Previous Topic | Next Topic |
|
hherrm
1407 Posts |
 Posted - 05/22/2008 : 5:18:31 PM
|
Can someone please explain to me how W-2 income and pay stubs are figured for income.
I think I'm losing it. I knew it up until today but the UW is telling me that W-2 income is averaged over the last 24 months. She may use 2007 and YTD if it is higher but still averaged.
Is she correct? |
|
dtabar
816 Posts |
Posted - 05/22/2008 : 5:22:52 PM
|
| yes averaged, unless you have an amazing LOE regarding the pay increase. |
|
|
hherrm
1407 Posts |
Posted - 05/22/2008 : 5:30:40 PM
|
Thanks for your reply. My question is, what is the use of the VOE showing hourly wages and 40 hour work week and date of last increase in pay.? Why do we need pay stubs with YTD?
Why not just send W-2's for the last 2 years?
This is the first time for me that I ever had an issue with income in all my years of doing loans.
I can see if we have someone that worked different jobs but not for someone that has been on the same job for 5 years. |
|
|
ppulatie
2278 Posts |
Posted - 05/22/2008 : 5:35:33 PM
|
| Will also depend upon whether the borrower gets overtime and bonuses. If so, you must show the W-2's to prove that he gets this regularly. |
|
|
moneyluck
3775 Posts |
Posted - 05/22/2008 : 5:36:15 PM
|
I've never had trouble getting UW to take current BASE pay, and then OT and Bonus averaged over 2 years (or 2007 and 2008 ytd, if they are in a good mood)
But I usually submit with a little note about how I figured income and why it makes more sense than whatever else they were inclined to do :)
|
|
|
nowbroker
1491 Posts |
Posted - 05/22/2008 : 5:36:32 PM
|
| If they have the same W2 job for 5 years and work a 40 hour work week, the underwriter should use 40hr x hourly rate x 52 weeks / 12. If they are not find an underwriter with a brain. |
|
|
hherrm
1407 Posts |
Posted - 05/22/2008 : 5:40:42 PM
|
quote:
Originally posted by nowbroker
If they have the same W2 job for 5 years and work a 40 hour work week, the underwriter should use 40hr x hourly rate x 52 weeks / 12. If they are not find an underwriter with a brain.
THANK YOU. That is how I figured the income. There is no OT or bonus just plain hourly wages and 40 hours a week. |
|
|
bmoran
1167 Posts |
Posted - 05/22/2008 : 5:47:16 PM
|
quote:
Originally posted by hherrm
quote:
Originally posted by nowbroker
If they have the same W2 job for 5 years and work a 40 hour work week, the underwriter should use 40hr x hourly rate x 52 weeks / 12. If they are not find an underwriter with a brain.
THANK YOU. That is how I figured the income. There is no OT or bonus just plain hourly wages and 40 hours a week.
That is the correct answer 
Remember just as there are alot of loan officers who don't know how to calculate income or can't remember how to calculate, so there are underwriters.
Underwriters are not the GOD'S many think they are. Educate yourself on guidelines and qualification standards and be prepared to show the underwriter.
If you just argue it wont get you anywhere so show them the guideline, sometimes that won't even help if they have dug their heels but it helps to know and move the loan to someone who does know.
I can not tell you how many times I read the seller guide and had to show the underwriter that they could do a loan, right from there own seller guide.
Efanniemae.com has a wealth of knowledge, learn to read the sellers guiedlines and allregs is awesome also |
|
|
Travis Du Bois
590 Posts |
Posted - 05/22/2008 : 5:48:12 PM
|
For a second I though "oh no you can not be serious...someone does not know how to calculate w-2 income" then I read on and you explained a little more... LOL
|
|
|
| |
Previous Topic | Next Topic |
|
Search for: 
