18-06

2017 Tax Forms, Returns and Transcripts

HomeBridge is providing guidance on W-2/1099 forms and tax return requirements for loans funding after January 31, 2018.  The following policy applies to conventional, government, (including manually underwritten loans), Jumbo, and Expanded Plus (as applicable).

W-2 and/or 1099 Forms

Federal law requires employers to issue Wage and Tax Statements (W-2) and Form1099-Misc for the previous year to employees/individuals no later than January 31st of the current year.

Loans Funding on or after February 1, 2018 through March 30, 2018

When the AUS (DU/LP) Findings report or loan program requirements on manually underwritten loans require a W-2 and/or 1099 to support the income used to qualify the loan the following applies:

  • The 2017 W-2 and/or 1099, as applicable, will be required for one or two years as determined by DU/LP:
    • 1 year W-2/1099 per DU/LP the 2017 W-2 is required. Transcript not
    • 2 years W-2/1099 per DU/LP W-2 requirements are as follows:
      • 2017 W-2/1099, and
      • 2016 W-2/1099 and W-2/1099 transcript required

Loans Funding April 2, 2018 through April 30, 2018

  • One Year W-2/1099 Required
    • If 1 year W-2/1099 required the following applies:
      • The 2017 W-2/1099, and
      • The 2017 W-2/1099 transcript, or
      • A 2017 “No Record Found”
  • Two Years W-2/1099 Required
    • If 2 years W-2/1099 required the following applies:
      • The 2017 W-2/1099, and
      • The 2017 W-2/1099 transcript, or
      • A 2017 “No Record Found”, and
      • The 2016 W-2/1099 and W-2/1099 transcript is required.

AUS (DU/LP) and Manually Underwritten Loans (Government, Jumbo, Expanded Plus) – Tax Return Requirements

When DU/LP requests either one or two year’s tax returns or when tax returns are required to document income on manually underwritten government or Jumbo transactions, HomeBridge requirements are determined by loan funding date as detailed below.

Loans Funding on or after February 1, 2018 through April 16, 2018

  • One Year Tax Return Required
    • 2017 Tax Return Not Filed
      • Borrower to sign affidavit at closing that their tax return has not been filed. Transcripts not required, and
      • A copy of the 2016 tax return and 2016 transcript
    • 2017 Tax Return Filed
      • A copy of the fully executed 2017 tax return is required. Transcripts not required, and
      • Evidence any money owed has been paid (e.g. cancelled check, bank statement, credit card statement, etc.), or
      • Evidence a refund has been/or will be received.  Acceptable evidence includes a copy of bank statement evidencing deposit if received or, if the refund has not been received, verify refund at Where’s My Refund,
  • Two Year’s Tax Returns Required
    • 2017 Tax Return Not Filed
      • Borrower to sign affidavit at closing that their tax return has not been filed. Transcripts not required, and
      • Copy of the 2016 tax return and transcript and 2015 tax return and transcript required
    • 2017 Tax Return Filed
      • If the borrower filed their 2017 return the borrower will be required to provide the fully executed 2017 return. Transcripts not required, and
      • Evidence any money owed has been paid (e.g. cancelled check, bank statement, credit card statement, etc.), or
      • Evidence a refund has been/or will be received.  Acceptable evidence includes a copy of bank statement evidencing deposit if received or, if the refund has not been received, verify refund at Where’s My Refund, and
      • A copy of the borrower’s 2016 tax return and tax transcript required

Loans Funding on or after April 17, 2018 through October 14, 2018

  • One Year Tax Return Required
    • 2017 Tax Return Not Filed
      • Evidence an extension was filed and, if a payment was due, evidence the tax has been paid, and
      • A copy of the 2016 tax return and 2016 transcript
    • 2017 Tax Return Filed
      • If the borrower filed their 2017 return the borrower will be required to provide the fully executed 2017 return, and
      • A copy of the 2017 transcript or the 2017 transcript with “No Record Found” result, and
      • Evidence any money owed has been paid (e.g. cancelled check, bank statement, credit card statement, etc.), or
      • Evidence a refund has been/or will be received.  Acceptable evidence includes a copy of bank statement evidencing deposit if received or, if the refund has not been received, verify refund at Where’s My Refund
  • Two Year’s Tax Returns Required
    • 2017 Tax Return Not Filed
      • Evidence an extension was filed and, if a payment was due, evidence the tax has been paid, and
      • A copy of the borrower’s 2016 tax return and tax transcript, and
      • A copy of the borrower’s 2015 tax return and tax transcript.
    • 2017 Tax Return Filed
      • If the borrower filed their 2017 return the borrower will be required to provide the fully executed 2017 return, and
      • A copy of the 2017 transcript or the 2017 transcript with “No Record Found” result, and
      • Evidence any money owed has been paid (e.g. cancelled check, bank statement, credit card statement, etc.), or
      • Evidence a refund has been/or will be received. Acceptable evidence includes a copy of bank statement evidencing deposit if received or, if the refund has not been received, verify refund at Where’s My Refund, and
      • A copy of the borrower’s 2016 tax return and the 2016 tax transcript.

If 2 years tax returns are required, and the 2017 tax return is provided and reflects a lower income than 2016 tax return the file will be subject to additional underwriter review and may require additional documentation.

Refer to the Bulletin PDF to see the Tax Documentation and Transcript Policy chart