d. The requirement to reduce the value of retirement assets consisting of stocks, bonds, and mutual funds by 30% when measuring the three-year continuance for retirement income. minus the Property’s. Funds needed to complete the. Refer to the Variable Income section of B3-3. All income that is calculated by an averaging method must be reviewed to assess the borrower’s history of receipt, the frequency of payment, and the trending of the amount of income being received. Requirement. If the loan is delivered prior to the lender obtaining a paystub then the borrower must be qualified using a fixed base income only. For purposes of these requirements, “total points and fees” and “total loan amount” must be calculated in accordance with Regulation Z (12 CFR § 1026. Total verified liquid assets: $30,000. If income from a government annuity or pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. is employed by family members (two years’ returns); is employed by interested parties to the property sale or purchase (two years’ returns); The lender must verify the ownership of the account and confirm that the account is vested and allows withdrawals regardless of current employment status. Variable Annuity: In a variable annuity, the premium is. Subpart B2: Eligibility. Notably, Fannie Mae recognizes retirement income,. not required unless the borrower requests a release of liability. Annuities are just one of the many financial products designed to offer income for retirees. m. 1-09, Other Sources of Income. The following table provides verification requirements for retirement, government annuity, and pension. Determine the net documented assets. Verification of Retirement, Government Annuity, and Pension Income Document current receipt of the income, as verified by one or more of the following: interest and dividend income (unless other evidence that asset will be depleted) military income. The requirement to reduce the value of retirement assets consisting of stocks, bonds, and mutual funds by 30% when measuring the three-year continuance for. They call this practice “grossing up” income because you. Section 5303. The total qualifying income that results may not exceed the borrower's regular employment income. Standard Freddie Mac. For all Servicing Guide resources, please visit guide. Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Subpart B1: Loan Application Package. Certain components of the loan file – income, employment, and assets – are eligible for validation by DU using electronic verification reports obtained from vendors. Certain components of the loan file – income, employment, and assets – are eligible for validation by DU using electronic verification reports obtained from vendors. As. Top Lender Questions on Federal Income Tax Returns, Installment Agreements, and Transcripts . Annuities are issued by insurance companies. a statement from the organization providing the income, a copy of retirement award letter or benefit statement, a copy of financial or bank account statement, a copy of signed federal income tax return, an IRS W-2 form, or. Citizen Borrowers. The servicer must determine the borrower's new modified mortgage loan terms in accordance with Determining the Fannie Mae Flex Modification Terms in D2-3. To gross up net income, the Servicer must: Establish the Borrower’s monthly net income in accordance with this Section 9202. (See B3-3. Obtain a copy of the borrower’s disability policy or benefits statement from the benefits payer (insurance company, employer, or other qualified disinterested party) to determine. " Federal Home Loan Mortgage Corporation ," Page 1. Example. Retirement, Government Annuity, and Pension Income . Launch Ask Poli for Sellers . Launch Ask Poli for Sellers . Which statement most accurately describes the role and function of Ginnie Mae in the secondary mortgage market. Assets used for the calculation of the monthly income stream must be owned individually by the borrower, or the co-owner of the assets must be a co-borrower of the mortgage loan. You can also use the income from annuities, an investment vehicle that pays out regular monthly payments, when applying for a mortgage. Income Assessment. Need additional assistance options for your down payment. Determining the Need for Federal Income Tax Returns. The Servicer must gross up all net income when the Borrower submits bank statements to support the income type. Funds needed to complete the transaction: $18,000. The December Selling Guide update expands eligibility to allow the sale of loans secured by single-width manufactured homes; updates requirements related to the use of retirement, government annuity, and pension income; modifies our seller/servicer eligibility standards related. DU will require the following: a completed Request for Verification of Employment (Form 1005), the borrower's recent paystub and IRS W-2 forms covering the most recent one-year period, or. the lender must evaluate it according to Fannie Mae’s guidelines for income received from a partnership or an S corporation. Fannie Mae mortgage originating and underwriting products are easy to use and designed to help you grow your business and meet your borrowers’ needs. a copy of retirement award letter or benefit statement, a copy of financial or bank account statement, a copy of signed federal income tax return, an IRS W-2 form, or. The lender must obtain. 25% Fannie. the conditions of eligibility for these loans, and features such as annuity income calculations used in these loans. If I have a question on how to document income, I Google “Fannie Mae requirement for…” or “Freddie Mac Doc Matrix”. Updated: 05/03/2023. (Biweekly gross pay x 26 pay periods) / 12 months. Carlos T. General Information. Servicers must refer to Section 9202. The inter vivos revocable trust must be established by one or more natural persons, solely or jointly. the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. DU considers the following assets non-liquid assets: Cash Deposit on Sales, Net Worth of Business, Other Non-Liquid Asset, and Unsecured Borrowed Funds. Document current receipt of the income, as verified by one or more of the following: a statement from the organization providing the income, a copy of retirement award letter or benefit statement, a copy of financial or bank account statement, a copy of signed federal income tax return, an IRS W-2 form, or; an IRS 1099 form. B3-3. The lender or servicer must ensure that the insurer, policy, and coverage meet Fannie Mae's requirements. Guide Resources. Regular income amount: $6,000 per month. 3 for instructions on processing IRS Form 4506-C, if applicable, based onNon-Taxable Income and Its Significance. Form 1007 or Form 1025, as applicable, and either. For additional information, see B3-3. 3-01, Fannie Mae Short Sale. See B3-3. Hourly. Chapter B3-4: Asset Assessment. Please take a few minutes to watch a short training video. 10) (Assumes a 10% penalty applies for early distribution, which must be levied against any cash being withdrawn for closing the transaction as well as the remaining funds used to calculate the income stream. Subpart B2: Eligibility. regulator responsible for overseeing Fannie Mae and Freddie Mac, issued the Duty to Serve UnderservedAn annuity is a contract between an individual and an insurance company, wherein the individual invests a sum of money in exchange for a series of periodic payments. Mortgage Lending and Non-Borrower Household Income A Fannie Mae Housing Working Paper December 29, 2015 Walter Scott, Senior Economist . com. Joint life annuities are a valuable financial tool for couples seeking a consistent income stream in retirement. Fannie Mae and Freddie Mac offer a variety of coverage options. equivalent to 25% of the non-taxable income to the borrower’s income. Fannie Mae Cash-Out Refinance . Fannie Mae is updating this guidance to require that for Fannie Mae HAMP modifications, the servicer develop an “adjusted gross income” for. 02 D Boiler and Machinery / Equipment / Mechanical Breakdown Insurance. 1, Employment and Other Sources of Income. The requirement to reduce the value of retirement assets consisting of stocks, bonds, and mutual funds by 30% when measuring the three-year continuance for retirement income was removed from the Selling Guide B3-3. 2. g. The policy that permitted this type of income was eliminated in 2009. In addition, some Fannie Mae mortgages require that payments not exceed 28% of the borrower's gross monthly income. Be sure to consult your automated underwriting system response and program descriptions. 5. Fannie Mae’s underwriting guidelines emphasize the continuity of a borrower’s stable income. Income Assessment. Lender must document 3–year continuance. Guidance for documenting access to income and business liquidity If the Schedule K-1 reflects a documented, stable history of receiving cash distributions of income from the business consistent with the level of business income being used to qualify, then no further documentation of access to. Temporary Leave Income. 1, Employment and Other Sources of Income. Weekly. The lender must verify the borrower’s ownership of the account or asset. Ask Poli is an Artificial Intelligence powered search tool. Why were the Fannie Mae Income Limits 2023 adjusted?Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Temporary Leave Income. The borrower has the right to select the insurer of their choice to provide property insurance for the subject property, provided that the insurance meets Fannie Mae's requirements. 1-09, Other Sources of Income in December 2020. Regular income amount: $6,000 per month. Established during the Great Depression, Fannie Mae purchases mortgages from lenders, converts them into mortgage-backed securities, and sells them to. ) The remaining 25% of the gross rent will be absorbed by vacancy losses and ongoing. Social Security, VA, or other government retirement or annuity. To learn more about income continuance or to discuss your homebuying and mortgage financing options, contact our team by phone at (855)855-4491 or by email at jvmteam@jvmlending. See below for maximum gross-up amounts: Fannie Mae and Freddie Mac allow grossing up 125% for conventional financing for fixed income borrowers on social security. Tax returns are required if the borrower. Fannie Mae's Selling Guide and its updates, including Guide Announcements and Release Notes, are the official statements of Fannie Mae's policies. Regular income amount: $6,000 per month. An income annuity is a financial product designed to provide a steady stream of income during retirement. 3-01, Stocks, Stock Options, Bonds, and Mutual Funds (06/30/2015), for determining value and whether documentation of the borrower’s actual receipt of funds is required when used for the down payment and. 1-09, Other. Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published. HomeReady permits lower credit scores. S. by Sarah LagattollaDirector of Credit Risksarah@bankersadvisory. Maximum LTV, CLTV, and HCLTV Ratio. To calculate asset depletion income for Fannie Mae, you will need to follow these steps: 1. For additional information, see FAQs: Using Income from Retirement and Employment-related Assets and B3-3. Guide Resources. Lenders are responsible for making the final determination of whether the borrower’s specific income source has a defined expiration date. When submitting rental income to DU for an investment property: The lender should calculate the net rental income amount for each property and enter the amount (either positive or negative) in the Net Monthly Rental Income in Section 3. While every effort has been made to ensure the reliability of the content in Ask Poli, Fannie Mae's Selling Guide and its updates, including Guide Announcements and Release Notes, are the official statements of Fannie Mae's policies and procedures, and should be complied with in the event of discrepancies between information provided. Yes. VA Loans allows borrowers to gross up 115% of their social. Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Temporary leave income: $2,000 per month. The version of Schedule K-1 that is utilized to report a borrower’s share of income (or loss) is based on how the business reports earnings for tax purposes:. There are five main types of pension annuities: fixed, variable, indexed, immediate, and deferred. k Social Security IncomeThese guidelines describe our underwriting requirements for one-to-four family conforming conventional mortgages and can be superseded by changes made by secondary market investors, Federal NationalGROUP ANNUITIES – if you purchased your annuity through an employer 403(b) Withdrawal Request Form - Non-ERISA This form is for a participant or alternate payee to request a distribution from a 403(b) Non-ERISA annuity other than for a hardship or as a systematic withdrawal. Employment Documentation Provided by the Borrower’s Employer. Temporary leave income: $2,000 per month. . Company to Host Conference Call. Choosing an annuity mortgage involves. NOTE: Income must be reported to Fannie Mae for all high LTV refinance loans. Note: Ask Poli is an Artificial Intelligence powered search tool. . The lender must obtain. Multiply the amount of the monthly net income by 1. Freddie Mac Form 65 • Fannie Mae Form 1003 URLA Effective 9/2020 • Instructions Revised 3/2020 1b. 16 Document retirement, government annuity, or pension income for Alice Firstimer with one of the following documents: letters from the organization providing the income, retirement. 50% Loan Term 180. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. For additional information, see B3-3. This FAQ document provides responses to common questions related to Fannie Mae’s property eligibility and appraisal policies. The lender must verify the borrower's income in accordance with Section B3–3. Social Security, VA, or other government retirement or annuity. Obtain the following documents: a completed Form 1005, or. Retirement, Government Annuity, and Pension Income. 1-09, Other Sources of Income. This Fact Sheet provides additional guidance to help lenders determine eligibility for non-U. The value of the asset and any related documentation must meet the requirements. Borrowers relying on overtime or bonus income for qualifying purposes must have a history of no less than 12 months to be considered stable. Lender must document 3–year continuance. 1 $3. The following table provides verification requirements for retirement, government annuity, and pension income. If rental income is claimed on Schedule K-1 can the distributions be used for qualifying purposes? In order to include a positive net rental income received through a partnership or an S corporation in the borrower’s monthly qualifying income, the lender must evaluate it according to Fannie Mae’s guidelines for income received from a. The most common way for retirees to get a mortgage is by qualifying based on income, said certified financial planner Daniel Graff, a principal and client advisor at. The servicer must determine the borrower’s housing expense-to-income ratio as outlined in Evaluating a Borrower’s Ability to Make a Cash Contribution in D2-3. " Federal Housing Finance Agency. PART B Origination thru Closing. Total verified liquid assets: $30,000. an IRS 1099 form. Refer to the applicable topics in Chapter B3-3, Income Assessment for additional information about specific tax return requirements. If the actual amount of federal and state taxes that would generally. Fannie Mae purchases or securitizes ATR Exempt Loans as long as such loans meet the other eligibility and underwriting requirements described in this Guide. Refer to Selling Guid e Announcement 09-19 for more information. Acceptable Sources of Reserves. DU considers the following assets non-liquid assets: Cash Deposit on Sales, Net Worth of Business, Other Non-Liquid Asset, and Unsecured Borrowed Funds. 501. If income from a government annuity or a pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. Home, 80 percent. The lender must obtain. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental. 3-13 , and Selling Guide section B5-6-02. D. Biweekly. Lenders must verify this income and ensure it will continue for at least three years from the date of the mortgage application. If the Net Monthly Rental Income is a “breakeven” amount, the user must enter either $0. For loan casefiles underwritten through DU, the maximum allowable DTI ratio is. 1 4. An inflation -adjusted annuity is a financial product that provides a stream of income that increases with inflation. It's best to gather these documents ahead of time to streamline the application process. Income documentation must be no more than 90 days old as of the date the servicer first determines that the borrower submitted a complete BRP or at the time of a subsequent evaluation for another workout option. An annuity due is a type of annuity that is commonly used in personal finance and investing. Examples of liquid financial assets that can be used for reserves include readily available funds in. The Guaranteed Minimum Withdrawal Benefit (GMWB) is a feature of certain annuity contracts. Ask Poli is an Artificial Intelligence powered search tool. For example, if you receive $4,000 a month from fixed income sources and your debt and recurring payments equal $1,000, your DTI ratio is 25%. When used for reserves, 100% of the value of the assets may be considered, and liquidation is not required. of this publication are granted to Fannie Mae-approved lenders, servicers, and other mortgage finance professionals, strictly for their own use in originating mortgages, selling mortgages to Fannie Mae, or servicing mortgages for Fannie Mae. If income from a government annuity or pension account will begin on or before the first payment date, document the income with a benefit statement from the. 1-02, Standards for Employment Documentation. interest and dividend income (unless other evidence that asset will be depleted) military income. All of the following loan parameters must be met in order for employment-related assets to be used as qualifying income: Loan Parameter. Social Security, VA, or other government retirement or annuity. The lender may use the Request for Verification of Employment (Form 1005) to document income for a salaried or commissioned borrower. 9 Billion for 2022 and $1. the lender must evaluate it according to Fannie Mae’s guidelines for income received from a partnership or an S corporation. If income from a government annuity or pension account will begin on or before the first payment date. This feature guarantees the annuity owner a minimum income stream, regardless of market conditions, by allowing them to withdraw a fixed percentage of their investment each year without depleting the principal. Fannie Mae purchases or securitizes mortgages that are secured by properties that have a business use in addition to their residential use, such as a property with space set aside for a day care facility, a beauty or barber shop, or a. The stable and reliable flow of income is a key consideration in mortgage loan underwriting. a copy of signed federal income tax return, an IRS W-2 form, or. Verify that the income can be expected to continue for a minimum of three years from the date of the mortgage application. 0 0 Actual/Estimated. 4 $2. Twice monthly gross pay x 2 pay periods. Financing Concession . monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. Debt-to-Income Ratio 28. 2022. Retirees often have significant assets, but limited income, so Fannie and Freddie have found ways to help retirees qualify based on their assets. 02 D Boiler and Machinery / Equipment / Mechanical Breakdown. “Freddie Mac and Fannie Mae have adopted a new refinance option for loans to borrowers with incomes at or below 100% of Area Median Income and you may be eligible to take advantage of this program. November 1, 2023. 1-09, Other Sources of Income. The lender must obtain. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as. 25% Fannie. When the borrower owns property – other than the subject property – that is rented, the lender must document the monthly gross (and net) rental income with the borrower’s most recent signed federal income tax return that includes Schedule 1 and Schedule E. Note: Some of these asset types. the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. It can be a useful tool for budgeting, meeting financial obligations, and planning for retirement. 1 $8. See B3-3. Chapter B3-1: Manual Underwriting. comFannie Mae gave current and former employees four options to reallocate their retirement funds — lump-sum distribution, an annuity, the Fannie Mae 401(k) plan or an individual retirement account. Obtain a copy of the note to establish the amount and length of payment. Employment offers or contracts: prohibits an employment offer or contract for future employment from a family member or interested party to the transaction Lender staffing, training, and policies and procedures:. The lender must verify the borrower’s ownership of the account or asset. 1 The risk profile of this loan casefile appears to meet Fannie Mae's guidelines. checking or savings accounts; investments in stocks, bonds, mutual funds, certificates of deposit, money market funds, and trust accounts; the amount vested in a retirement savings account; and. Annuity Income Watch Me! Annuity & Retirement Distribution Answer Me! Foundations On-Demand NOT YOUR ORDINARY INCOME 13 Notes: Watch Me! Annuity & Retirement DistributionConclusion. See B3-3. Fannie Mae. HomeReady mortgage’s accessory unit income and boarder income flexibilities help to meet the diverse needs of today’s home buyers by expanding access to creditworthy low-income borrowers. Updated November 2023. Freddie Mac HomeOne ℠. the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. Fannie Mae customers! Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. The lender warrants that the borrower is employed at the time the loan is delivered to Fannie Mae. Examples of income of this type include income from hourly workers with fluctuating hours, or income that includes commissions. Portfolio Manager, or Fannie Mae’s Single-Family Servicer Support Center at 1-800-2FANNIE (1-800-232-6643) with any questions regarding this Lender Letter. c. 4 Billion for Fourth Quarter 2022. Note: Ask Poli is an Artificial Intelligence powered search tool. Lender must document 3–year continuance. In a significant policy change, Fannie Mae has announced that, starting from the weekend after November 18, 2023, it will accept 5% down payments for owner-occupied 2-, 3-, and 4-unit homes. When a component of the loan is validated by DU, the loan may. If the trust is established jointly, there may be more than one primary beneficiary as long as the income or assets of at least one of the individuals. For manually underwritten loans, Fannie Mae’s maximum total DTI ratio is 36% of the borrower’s stable monthly income. Subpart B1: Loan Application Package. 3; and. This type of annuity is designed to help individuals maintain their purchasing power over time, as the payments they receive will increase in response to rising prices. and monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income. current receipt of trust income with one month’s bank statement or other equivalent document. The total qualifying income that results may not exceed the borrower's regular employment income. It can be a useful tool for budgeting, meeting financial obligations, and planning for retirement. For loan casefiles underwritten through DU, the maximum allowable DTI ratio is. For additional information, see B3-3. Annuity payout options determine how and when the funds invested in an annuity contract are paid out to the annuity holder. 1-09, Other Sources of Income, for boarder income requirements, and B5-6-02,. To learn more about sweat equity, click here. Note : The policy which required 60% of the vested amount in a retirement account be used was eliminated in November of 2012. If income from a government annuity or pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. Stable and Predictable Income. Servicers must refer to Section 9202. Funds needed to complete the. 501. Total verified liquid assets: $30,000. The Fannie Mae guidelines allow borrowers to use retirement income, such as pensions, Social Security benefits, and distributions from retirement accounts like 401 (k)s or IRAs, for mortgage qualification. November 1, 2023. For depository assets (checking and savings accounts, money market funds, and certificates of deposit), DU will require the following: two consecutive monthly bank statements (60 days of account activity) for all purchase transactions, or. For mortgages originated for sale to the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation. 1-01, General Income Information), and use the averaged amount as part of the borrower’s qualifying income as long as the borrower provides current evidence that they own additional property or assets that can be sold if extra income is needed. Note: For loan casefiles that are not. If income from a government annuity or a pension account will begin on or before the first payment date, document the income with a benefit statement from the organization providing the income. It promotes financial stability, protects against overspending, and enables long-term financial planning. an IRS 1099 form. PART A Doing Business with Fannie Mae. Fannie Mae. The requirement to reduce the value of retirement assets consisting of stocks, bonds, and mutual funds by 30% when measuring the three-year continuance for retirement income was removed from the Selling Guide B3-3. 1-09, Other Sources of Income. The lender must obtain all other employment documentation as required by the Selling Guide. the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. Inflation -adjusted annuities are typically offered by. It is important to consider the tax implications of your annuity choices and consult with a tax. The total qualifying income that results may not exceed the borrower's regular. Top Lender Questions on Federal Income Tax Returns, Installment Agreements, and Transcripts . m. Depository Assets. a copy of signed federal income tax return, an IRS W-2 form, or. Opinions, analyses,. Lender may use the AMI limits for purposes of. , ET,. Hourly. For more questions on this specific. interest and dividend income (unless other evidence that asset will be depleted) military income. 0 0 Sales Price $265,0 0 0. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental. the amount and duration of the borrower's “temporary leave income,” which may require multiple documents or sources depending on the type and duration of the leave period; and. monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, rental income, and other income such as adoption assistance. Example. Asset Requirements. of this publication are granted to Fannie Mae-approved lenders, servicers, and other mortgage finance professionals, strictly for their own use in originating mortgages, selling mortgages to Fannie Mae, or servicing mortgages for Fannie Mae. Guide Resources. Fannie Mae Manufactured Community Housing Loan . Fannie Mae does not set a minimum remaining term requirement at the time of loan purchase. Each Lender must determine borrower and loan eligibility in accordance. Allowable Age of Credit Documents. 3-01, Stocks, Stock Options, Bonds, and Mutual Funds, for. 1-09, Other Sources of Income, for boarder income requirements, and B5-6-02,. Refer to the applicable topics in Chapter B3-3, Income Assessment for additional information about specific tax return requirements. Total verified liquid assets: $30,000. DU will consider a non-occupant borrower’s income as qualifying income for a principal residence with certain loan-to value (LTV) ratio limitations. the borrower’s recent paystub and IRS W-2 forms covering the most recent two-year period. DU does not consider the amount of non-liquid assets. The lender must obtain. Lenders have difficulty using income from the growing number of gig economy workers* to. copies of the current lease agreement (s) if the borrower can document a qualifying exception (see Reconciling Partial or No Rental. Gift Funds. 1, Employment and Other Sources of Income. Bonus pay at Fannie Mae Corporation ranges from $8,000 to $8,000 annually among. Subpart B1: Loan Application Package. For additional information, see FAQs: Using Income from Retirement and Employment-related Assets and B3-3. The initial adjustment period in months must align with the initial fixed-rate period in years. Cash Value of Life Insurance and Debt-to-Income Ratios. Section 5303. Announcement SEL-2023-10: Selling Guide Updates. 9 $9. 80% if the owner of the asset (s) being used to qualify is at least 62 years old at the time of closing. 1Secondary employment must be documented by obtaining the following: a completed Request for Verification of Employment ( Form 1005 ); or. Launch Ask Poli for Sellers . 1, 2023. Carlos T. However, Fannie Mae does allow certain exceptions to this policy for boarder income and properties with accessory units. Fannie Mae vs Freddie Mac vs Ginnie Mae . Lender must document 3–year continuance. The total qualifying income that results may not exceed the borrower's regular employment income.