TPO: Loan Application - Income

The Income section of the loan application is used to document each of the borrower's sources of income, including employment earnings, investment gains, and retirement income. This article explains how to verify the borrower's income both electronically and manually, as well as how to review and edit tax transcript request forms.

 

Table of Contents

• Overview
• Run Electronic Verification of Income (eVOI)
• Edit Tax Transcript Request Forms
• Add Employment Income
• Add Other Sources of Income
• Related

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Overview

The "Income" page collects information about the borrower's employment and any other sources of income. If the borrower is completing their application on the consumer site (cPOS), any income information that they enter will appear on this page. Conversely, if the borrower is offline, this page can be used to add their employment information manually or to verify their income electronically via an external vendor. At least two years of income must be provided to complete this section of the application.

 

The totals at the bottom of the page provide a summary of each borrower's net income, as well as their combined income

 

Accessing the Income Section

The loan application is accessible within the Application tab in the navigation bar

Each section of the loan application is represented by a corresponding tab that appears below the stepper navigation bar when the application is opened. <

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Run Electronic Verification of Income (eVOI)

The quickest and easiest way to add the borrower's employment information is to verify their income electronically (eVOI). When you use eVOI, the system will use an external vendor to obtain the borrower's employment history and import it into their loan application.

The following information must be provided on the loan application before running eVOI:

• Borrower Name (first & last)
• Date of Birth
• Social Security Number

Use the following steps to run eVOI:

1. Select Run eVOI next to the name of the borrower whose income you want to verify 
   
2. Select Yes in the following window to indicate that the borrower has provided their consent to run eVOI (the borrower's consent is required before proceeding)
3. Wait several moments while the system retrieves the borrower's information
4. Any employment information found for the borrower will then appear on the "Income" page. Any missing information from the report will appear highlighted in red. 
5. You can revise any of the displayed info by selecting Edit Verified Info
   
6. If necessary, you can run eVOI again by selecting Update eVOI
   

The borrower can also run eVOI from the consumer site. Learn more

After eVOI is ran, a record of the borrower's authorization and a pdf copy of their income/employment report can be found in the DocVault

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Edit Tax Transcript Request Forms

Request forms for the borrower's tax transcripts are generated automatically upon creation of initial disclosures. On the "Income" page, you can review and edit pending request forms to ensure that the correct information will be requested. 

To view these forms, select Edit Transcript Request Forms

The following window displays a list of transcript request forms that will be generated upon disclosures. 

Each request form contains the following fields:

1. Transcript For - this field indicates which borrower transcripts are being requested for
2. First Listed Name on Tax Return - enter the borrower's name as it appears on their tax return
3. Joint Return with Co-Borrower - use the Yes/No radio buttons to indicate whether the borrower filed their taxes jointly with the co-borrower (if applicable)
4. Years Requested - use the drop-down menu to select which years tax transcripts should be requested for
5. Address on Tax Return (most recent) - enter the borrower's street address as it appears on their tax return from the most recent year for which a transcript is being requested
6. Address on Tax Return (prior year) - enter the borrower's street address as it appears on any prior tax returns 
7. Transcript Requested - use the drop-down menu to select which transcript should be selected
8. Transcript Type - use the drop-down menu to select a transcript type
   • Return Transcript (6a)
   • Account Transcript (6b)
   • Record of Account (6c)
9. Verification of Non-Filing - select this checkbox if the borrower did not file taxes for the requested year
10. W2, 1099, 1098, or 5498 - select this checkbox if the borrower used any of the listed form types to file their taxes in the requested years

If any additional information is needed to complete a particular transcript request form, it will be highlighted in red.

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Add Employment Income

If the borrower does not want to use eVOI, or if their eVOI report is missing one of the borrower's employers, you can add their employment income manually 

This section explains how to add the borrower's employment income for each of the following scenarios:

• the borrower is employed and receives a W-2 from their employer
• the borrower is on active military duty 
• the borrower is self-employed
• the borrower is retired
• the borrower is unemployed or has another employment relationship

To start, choose the Employment Type that describes the borrower's current employment

 

Employed

If Employed is selected, you will be prompted to enter the following information about the borrower's employment (required fields are marked by a red asterisk*):

1. Position & Employer Information
   
   • Position* - enter the position that the borrower holds with their employer
   • Type of Business - enter the employer's business type
   • Years on this Job* - enter the number of years that the borrower has worked for this employer
   • Duration in Same Field* - enter the number of years that the borrower has worked in their current field or profession
   • Company Name* - enter the name of the borrower's employer
   • Business Phone* - enter the employer's phone number
   • Company Street Address - enter the employer's street address
   • Employer is Family, Seller, Real Estate Agent or Other Party to Transaction - select this checkbox if the borrower's employer is a party to the current transaction
2. Pay Information
   • Base Pay* - enter the borrower's base monthly wage or salary. If necessary, use the drop-down menu to select a different period
   • Overtime Pay - enter the amount of money that the borrower typically receives from overtime pay each month. If necessary, use the drop-down menu to select a different period
   • Bonuses - enter the amount that the borrower typically receives in bonus pay each month. If necessary, use the drop-down menu to select a different period
   • Commissions - enter the amount that the borrower typically receives in commissions each month. If necessary, use the drop-down menu to select a different period
   • Foreign Income - select this checkbox if this income was earned in a foreign country
   • Seasonal Income - select this checkbox if this income was earned on a seasonal basis

If the borrower's current employment has a duration of less than two years, the system will prompt users to provide previous employment information up to two full years.

 

Active Military Duty

If Active Military Duty is selected, you will be prompted to enter the following information about the borrower's military pay. Required fields are marked by a red asterisk*. All fields in the Income section are set to monthly amounts by default. If necessary, use the drop-down menus in this section to select a different period for a particular income type.

1. Military Service Info
   • Rank* - enter the borrower's current rank in the military
   • Years on this Job* - enter the date when the borrower began their current military position
   • Duration in Same Field* - enter the number of Years and Months that the borrower has held this position
   • Branch* - enter the branch of the military where the borrower serves
   • Business Phone* - enter the phone number for the post where the borrower is stationed
   • Company Street Address - enter the street address for the post where the borrower is stationed
2. Income 
   • Military Base Pay* - enter the borrower's base monthly military pay
   • Military Clothes Allowance - enter any money that the borrower receives each month to purchase clothing
   • Military Combat Pay - enter any money that the borrower earns monthly for serving in a combat zone
   • Military Flight Pay - enter any money that the borrower earns monthly for performing flight-related duties
   • Military Hazard - enter any money that the borrower earns monthly as hazard pay
   • Military Overseas Pay - enter any money that the borrower earns monthly for serving overseas
   • Military Prop Pay - enter any money that the borrower earns monthly as prop pay
   • Military Quarters Allowance - enter any money that the borrower earns monthly as prop pay
   • Military Rations Allowance - enter any money that the borrower receives each month to purchase food and other basic rations
   • Military Variable Housing Allowance - enter any military pay that the borrower receives each month to offset the costs of their housing

 

Self Employed

If Self Employed is selected, you will be prompted to enter the following information about the borrower's self-employment (required fields are marked by a red asterisk*):

1. Position and Business Info
   • Legal Entity Type - use the drop-down menu to select the legal classification of the borrower's business
   • Position* - enter the position that the borrower holds at their business
   • Ownership Share - use the radio buttons to indicate whether the size of the borrower's ownership stake is greater or less than 25%
   • Type of Business - enter the kind of business that the borrower owns
   • Years on the Job* - enter the date that the borrower began their self-employment
   • Duration in Same Field* - enter the number of Years and Months that the borrower has held this self-employed position
   • Company Name* - enter the name of the borrower's business
   • Business Phone* - enter the borrower's business phone number
   • Employer Identification # - enter the employer identification number for the borrower's business
   • Company Street Address - enter the street address for the borrower's business
2. Self-Employment Income
   • Gross Income* - the borrower's gross income is a measure of their net financial gain after all relevant business revenues and expenses have been taken into account for the fiscal year. If this is a positive figure, enter it in the Amount field. If the borrower's expenses exceed their revenues, select the Loss checkbox and instead enter the size of their annual losses. If necessary, use the drop-down menu to select a different period. Selecting will remind users that losses can be entered as base pay

Retired

If Retired is selected, you will be prompted to enter the borrower's retirement date. Any retirement income should be added to the Other Income section.

 

Other/Unemployed

If Other/Unemployed is selected, no additional information is required.

 

Additional Employers

You can add another current or previous employer by selecting the Add Employer button

Use the Employment Status drop-down menu to indicate whether you are adding a current or previous employer. Then select an Employment Type and add the relevant information as described above.

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Add Other Sources of Income

If the borrower has other sources of income, such as investment or retirement income, child support payments, or tips, this income can be added in the Other Income section at the bottom of the page. 

Select Add Item to create a new income source in this section

If there are multiple borrowers on the loan, use the Borrower drop-down menu to select which borrower the income should be added for

Use the Income Type drop-down menu to indicate the type of income the borrower receives. Hover over to learn more about entering certain kinds of payments as negative income. 

To view or provide the contact info for any of these income sources, click the blue Info icon ()

In the Amount field, enter the amount of money that the borrower receives from this income source each month. If necessary, use the drop-down menu to select a different period.

The borrower's total income from other sources appears at the bottom of this table 

To remove an income source from this table, select the red Remove icon () next to the corresponding item

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Related

• cPOS: Loan Application - Income