As a person that has worked, trained, and mentored in the mortgage underwriting world for 27 years, I definitely guessed the profit and loss situation wrong! My best guess was at earliest they may remove the P/L after you filed your 2021 returns, but to my surprise the following happened.

On February 2, 2022 as announced by a Fannie Mae lender letter dated (LL-2021-03) and Freddie Mac bulletin dated February 2, 2022 (Bulletin 2022-3)
Both agencies, effective immediately, have reverted back to almost all standard underwriting guidelines for self employed borrowers “pre-pandemic”.  Yes it is what you think… no more requirement for profit and loss statements as long the loan is using tax returns from 2020 as the most recent year. 

This means if you are using a DU / LP waiver for one year returns (using 2021 or 2020 as the one year) or two year returns (using a combination of 2021-2020 or 2020-2019) you can drop the profit and loss statements.  The only item that FNMA/FHLMC are holding onto is verification of current business operations within 20 days of close.

Impact to IncomeXpert and IncomeXpert PLUS ?

To our clients using IncomeXpert, the profit and loss calculator will still be included with all self-employed income types (Sch C , Sch F, 1065 , 1120S, 1120).  If you do not use the P/L portion it will determine the correct income based on the one or two year data entered for each return.  

To say it simply, you can choose to keep using the P/L or not… Blueprint provides the calculators and leaves each client to make the decision that is best for their situation.