This Bulletin has been updated; refer to highlights below
Homebridge is providing guidance on W-2/1099 and tax return requirements. The following applies to conventional, government (including manually underwritten loans), Jumbo and Simple Access (Full Doc option) transactions.
2020 W-2/1099 Requirements
Federal law requires employers to issue Wage and Tax Statements (W-2) and Form 1099-Misc for the previous year to employees/individuals no later than January 31st of each year
NOTE: January 31st falls on Sunday this year; employers have until February 1st to issue W-2/1099
Loans Funding on or after February 1, 2021
When the DU/LPA 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:
In the event a borrower has not received their 2020 W-2/1099 Homebridge will consider an exception on a case-by-case basis
2020 W-2/1099 Transcripts (if required)
Homebridge will order W-2/1099 transcript when required by program or if selected for random transcript processing. The following dates apply only in the event a transcript is required.
Loans Funding on or before March 31, 2021
- The 2020 W-2/1099 transcript not required
Loans Funding April 1, 2021 through May 30, 2021
- The 2020 W-2/1099 transcript, OR
- 2020 “No Record Found
Loans Funding on or after May 31, 2021
- The 2020 W-2/1099 transcript required
Important Note: Due to the Disaster Declaration issued by FEMA for severe winter storms, the IRS has extended the filing dates for the states of Louisiana, Oklahoma, and Texas to June 15, 2021
2020 Tax Return Requirements
Federal law requires 2020 tax returns to be filed by May 17, 2021 unless an extension has been requested
Loans Funding or before May 30, 2021
- A copy of the borrower’s 2020 tax return, OR
- The borrower must sign the Tax Return Affidavit stating they have not filed their 2020 return
Loans Funding May 31, 2021 through October 14, 2021
The chart below indicates Homebridge requirements for tax returns based on whether or not one or two year’s tax returns required and whether or not the borrower has filed their 2020 tax returns. The chart applies to all programs (as applicable) and to loans run through DU/LPA or are manually underwritten.
*As a reminder, Jumbo and Simple Access (Full Doc) transactions require tax transcripts in addition to tax returns
Loans Funding on or after October 15, 2021
- A copy of the borrower’s 2020 tax return is required
Tax Transcript Requirements (if required)
Homebridge will order the tax transcripts for any transaction where transcripts are required by program or for transactions selected by Homebridge for random transcript processing.
The following dates apply only in the event a transcript is required:
The updated Tax Documentation and Transcript Policy document as been posted on the Homebridge website at www.HomebridgeWholesale.com on the Working with Us page, under Reference Guides – General.
If you have any questions, please contact your Account Executive.