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Announcement 2019-015: 2018 Income Documentation Update

2018 W-2 and tax return/transcripts requirements

Announcement 2019-010, issued on February 18, 2019, addressed 2018 W-2, tax return and transcript requirements. Effective immediately, the following changes apply.

 

tax returns

For Note Dates April 16, 2019 to October 15, 2019, when the borrower has completed and filed the previous year's tax return (2018) and transcripts are not yet available, a footnote has been added that states:

2018 income may be used according to the following:

  • Review the 2016 and 2017 transcripts and the 2018 tax return
  • If loan file is an otherwise strong file with no other risk factors, and
  • Earning trends are stable or increasing, then
  • Average the income from the 2017 transcript and 2018 tax return

 

w-2 transcript requirements

The documentation requirement for most recent two years' W-2s for application dates of February 1, 2019 to April 14, 2019 has been updated. This will now align with the requirement for application dates on or before April 15, 2019 to October 15, 2019 as follows:

  • 2017 and 2018 W-2s, and 
  • Corresponding W-2 transcripts, or all of the following
    • 2018 W-2
    • 2018 W-2 transcript and tax transcript indicating No Record Found
    • 2016 and 2017 W-2s
    • 2016 and 2017 W-2 transcripts or tax transcripts

Please reference the NewRez Underwriting Policies and Procedures for full details, and the product profiles for non-agency for any specific or additional requirements that may apply.