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#1700636 - 05/17/12 04:22 PM Income on Freddie HARP reporting for HMDA LAR
nikicole03 Offline
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Joined: May 2012
Posts: 6
We're getting edits when running our data through CRA Wiz on files where the Underwriter input $1 for income because it was a Freddie Mac Relief Refinance Same Servicer, which only requires verbal Verification of Employment in some cases. (even though the income docs from the previous loan are in the file)

So we're wondering, is this correct? Should we NOT be reporting income on these loans and indicate N/A on the HMDA LAR?

Or, should we be asking the underwriters to leave the income in and report the income that was verified on their previous loan?


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#1700998 - 05/18/12 01:02 PM Re: Income on Freddie HARP reporting for HMDA LAR nikicole03
DawgFan Offline
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Joined: Jul 2002
Posts: 1,678
United States
You report the income relied upon in processing the application (1003.4(a)(10)). We run into this with some VA and FHA loans. If you didn't rely on any income to process the application, you report it as NA. You'll get a Quality Edit on those loans from the Fed when you submit your LAR, just be sure that your files clearly document that you didn't rely on income to process the application (especially if the income docs relied on from the previous loan are in file).
Opinions expressed are solely my own.

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