 Freddie
Mac requires income
documentation on all loans submitted for
liquidation.
 The negotiator is responsible for
calculating monthly gross and/or net
income of wage earners and selfemployed borrowers.
 Select
the type of income you want to
calculator from the menu tabs at the
bottom of the calculator.
 When
completing the income calculator
the negotiator should populate their
name and SID, the loan number and
heritage type.
 Use
the information listed in the
following slides to calculate mortgagor’s
income
 If
wage earner is paid weekly, complete
the following steps:
• 1. Select weekly from the drop down menu.
 Note: There are 7 days between pay statements
• 2. Input the gross amount of the check.
• 3. Input the check date.
• 4. Repeat steps 1 -3 for the net amount.
 (Monthly income will automatically calculate)
 If
wage earner is paid bi-weekly,
complete the following steps:
• 1. Select bi - weekly from the drop down menu.
• 2. Input the gross amount of the check.
• 3. Input the check date.
• 4. Repeat steps 1 -3 for the net amount.
 (Monthly income will automatically
calculate)
 If
wage earner is paid semi-monthly,
complete the following steps:
• 1. Select semi-monthly from the drop down
menu.
• 2. Input the gross amount of the check
• 3. Input the check date
• 4. Repeat steps 1 -3 for the net amount.
 (Monthly income will automatically calculate)
 If
wage earner is paid monthly, complete
the following steps:
• 1. Select monthly from the drop down menu.
• 2. Input the gross amount of the check
• 3. Input the check date
• 4. Repeat steps 1 -3 for the net amount.
 (Monthly income will automatically calculate)
 Repeat
the information on the previous
slides for each borrower with income on
the loan.
 If
the income documentation is Pay
Statements, complete the following steps:
• 1. Input the start date of the income.
• 2. Input the pay period end date on the pay
statement.
• 3. Enter the year to date amount on the pay
statement. (the calculator will automatically
configure the monthly income)
• 4. Repeat steps 1-3 for additional borrowers or
employers
 If
the income documentation is Profit and
Loss (Income) Statement, complete the
following steps:
• 1. Input company name.
• 2. Input the business gross revenue into the Revenue
field.
• 3. Enter the borrowers percentage of ownership for
the business.
• 4. Key in all business expenses.
• 5. Input the date the Profit and Loss is covering in the
start and end date fields.
 If
the income documentation is Schedule
E – Rental Income, complete the
following steps:
• 1. Input rental income amount.
• 2. Select the appropriate occupancy type from
the drop down menu.
• 3. Enter the borrower’s rental expense.
• 4. Key in HOA/Condo Fees (if applicable)
 (The calculator will automatically configure the
monthly net income)
 If
the income documentation Divorce
Degree, Court Order or Benefit Award
Letter, complete the following steps:
• 1. Input amount received per the award letter
or court ordered document.
• 2. Select use this income from the drop down
menu.