LoanStream Announces the following changes:

Wage Earners:

• A Verbal Verification will remain a requirement before docs and at time of funding.
• In those instances where a traditional VVOE is unable to be completed, an email from the employer as an alternative will suffice, with the following restriction.
o Be from the borrower’s direct Supervisor/Manager or the employer’s HR Department; and
▪ be from the employer’s email address directly to LoanStream; and
▪ contain all the standard information required on a verbal verification of employment, include the name, title and phone number of the person providing the verification.
• As an additional step, the following questions are being added to our Verbal Verification of Employment form.
o Is the company still open and in operations?
o Is the borrower still employed?
o Is the borrower on a leave of absence or furloughed?
o Has the borrowers income been affected?
• We will also be requiring a paystub (immediately preceding the closing date) or Written Verification of Employment dated within 10 calendar days of closing.
o Underwriter will add this as a PTD condition.
• If hours worked are reduced, the reduced hours will be utilized for qualifying purposes.
• If a borrower is on temporary leave, we can follow the temporary leave guidelines per program.

Self Employed:

• A Borrower prepared YTD P&L is required confirming income is in line with the income being utilized for qualifying purposes.
o YTD P&L must be signed and dated within 10 days of closing.
o Underwriter will add this as a PTD condition.
• If 2019 1040s have not been provided and validated per guidelines, a 2019 Borrower prepared P&L signed and dated must also be provided.
o Income must be in line with income being used for qualifying purposes.
o Underwriter will add this as a PTD condition.

Rental Income:

• If rental income is being utilized for qualification purposes and the most recent tax returns were used to calculate income the following is required.
o Copy of current fully executed lease
o Underwriter will add this as a PTD condition.

Note: When utilizing 2019 tax returns for qualifying purposes, we will require one of the following:

• 2019 1040 Tax Transcripts
• Evidence of E-filing, signed 1040s, proof of refund received or amount owed to IRS clearing borrowers account
If you have questions please contact your Account Executive.

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