Income Verification for Salaried/W2 Borrowers

Step 1

• For W2 borrowers only, the lender accepts The Work Number (TWN) or Truwork for a direct match into a payroll system. If there is a successful hit, then the employment history is pulled for paystubs and W2 resulting in instant validation.
• If the borrower is not a W2 and/or there was an invalid from return from the vendor, then proceed to Step 2.

Step 2

• Borrowers may connect to their payroll provider via a Truwork prompt to permit the retrieval of income and employment information. If a valid result is returned through the borrower-login process, then the verification may be used to support income validation.
• If there is an invalid result from the Truwork, prompt, then proceed to Step 3

Step 3

• Borrowers may connect to their personal bank accounts with Plaid CRA.
• Plaid CRA communicates directly with the borrower’s banking institution to obtain deposit history data which is analyzed to determine an income trend.
• If there is an invalid return from the vendor, then proceed to Step 4.
• Note: For accounts that are jointly owned, borrowers will be prompted to add the joint owner as a co-borrower to the transactions unless there is a justifiable reason (such as a death).

Step 4

• Borrowers may provide documentation for manual income review. This review is manually evaluated by underwriting to determine verified income. Documentation may include, but is not limited to:
  • Paystubs & W2: The borrower provides the two most recent (or one 30-day) paystub(s), as well as the most recent year W2.
  • Other eligible income documents:
    • VA benefit award letters (grossed up by 25%)
    • Documentable rental income either in the form of leases or tax returns, PITIA wash is allowed.
    • SSA Benefits; 15% of the income is nontaxable. The non-taxable portion is grossed up by 25%. Full 25% gross applies if borrowers provide proof that income is non-taxable.
    • Pension and/or brokerage account distributions
    • Benefits statement
    • Signed divorce decree or similar court document (child support and alimony)
    • 1099-R