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Blueprint blog cover with pencil and document icon, highlighting key steps and agency standards for manual underwriting.

Manual Underwriting: Key Guidelines and Best Practices

Manual underwriting remains a key part of the mortgage approval process when borrowers fall outside the parameters of automated underwriting systems (AUS)—such as those with non-traditional income, limited credit history, or recent financial hardship. While manual reviews allow for a more personalized and flexible assessment, they can also be time-consuming and error-prone without the right tools in place. This article outlines when manual underwriting is required, breaks down its key components, and highlights best practices

Blueprint blog header with magnifying glass icon and title explaining Fannie Mae’s Collateral Underwriter (CU) tool.

What is Fannie Mae CU? Understanding Collateral Underwriter

As mortgage lending practices continue to change, the need for accurate property valuations has never been more important. To reduce risk and maintain sound lending standards, lenders must ensure that the appraisals they receive are reliable and follow industry standards. As a key part of this process, Fannie Mae’s Collateral Underwriter (CU) provides automated risk assessments of appraisal data. By leveraging CU, lenders can make informed decisions, minimize risks, and improve loan quality. This post

Blueprint blog image with lightbulb icon and title about mortgage reps and warranties, including their meaning and purpose

What Are Reps and Warranties? Definition, Benefits & Insights

Business agreements can cover a wide range of transactions—from real estate deals to corporate mergers. In every case, the parties involved seek assurances that the information they rely on is accurate and reliable. This is where representations and warranties come into play. These legal statements form the foundation of trust in a contract by confirming that certain facts are true at the time of the agreement. While reps and warranties are used across many industries,

Blueprint header image for FHA income guidelines blog, featuring stacked books icon and blog title on FHA income requirements and sources.

Let’s talk FHA rental income

Securing an FHA loan requires careful adherence to specific income guidelines, which can evolve. Staying informed about these changes is critical for both lenders and prospective homeowners. In this article, we take an in-depth look at the FHA’s 2025 income guidelines. We’ll cover everything from eligibility requirements and sources of acceptable income to how to prepare proper documentation for a smooth approval process. We will also cover how IncomeXpert can streamline income analysis, reduce underwriting

FHA Income Updates

FHA Income Updates – April 2025 Some changes are coming to FHA income analysis! Starting April 10, 2025, new changes outlined in the FHA 4000.1 handbook will impact how rental income and business cash flow are calculated. Here is a summary of the changes we review in this months blog Rental Income Adjustments – More alignment with Fannie Mae/Freddie Mac, including add-backs for mortgage interest, taxes, and HOA dues. Schedule C, 1065, 1120S Changes – Clearer

Blueprint blog image with download folder icon and title covering how to complete Freddie Mac’s Form 91 for income analysis.

Freddie Mac Form 91: Step-by-Step Guide + Free Download

Self-employment is great, but it can make the mortgage application process somewhat challenging. The good news is that Form 91 by Freddie Mac can simplify things for both lenders and self-employed borrowers by streamlining the process and accurately assessing a borrower’s self-employed income, which can lead to faster approvals. Our guide provides a comprehensive, step-by-step breakdown of how to accurately complete the form while highlighting common pitfalls to avoid. It also highlights how the power

Blueprint blog header with income form icon and title explaining how to fill out Fannie Mae’s Form 1084 for self-employed borrowers.

Form 1084: How to Complete Fannie Mae’s Cash Flow Form

For lenders and underwriters, evaluating self-employed borrower income is one of the most complex parts of mortgage origination. Fannie Mae’s Form 1084 is a standardized tool used to calculate and document qualifying income based on tax return data—but completing it accurately can be time-consuming, error-prone, and highly manual. This article breaks down the components of Form 1084, offers a step-by-step guide to completing it in line with Fannie Mae’s expectations, and highlights how automation tools

How to determine variable income from a paystub

How to determine variable pay from a paystub When reviewing a borrower’s paystubs, you’ll quickly notice that payroll providers often use different formats and terminology, making it challenging to accurately determine employment income. For example, something as simple as overtime might be labeled in a variety of ways, such as Overtime, OT, Double Time, Weekend OT, Triple Time, and more. To address this issue, focus on placing each paystub entry into its proper class of

Calculating Income For Union or Skilled Trades

Determining income for union workers comes with unique challenges. Unlike conventional employment, these workers typically take on a series of short-term assignments. They don’t job-hop in the traditional sense; rather, they’re dispatched by their union halls to work on projects, moving from one to the next as assignments are completed. You’ll commonly see electricians, welders, carpenters, and other construction laborers in this group. Union-based work extends beyond construction. Generally, when one project ends, another is

How to determine variable income

Variable income is the leading cause of income calculation issues for most lenders. Variable income is generally categorized into the following classes as outlined in the guidelines: overtime, bonus, commission, tips, and base pay when the base is variable. Variability in base pay typically occurs when it depends on hours worked each week, the amount paid per hour, or a combination of both. Accurately underwriting variable income requires adhering to the four fundamental requirements for