Overview
Income Analysis rapidly provides Fannie Mae® Rep and Warrant (R&W) results from an IRS Schedule E (Form 1040). The speed and accuracy of the results put you in control of your review immediately, empowering you to take decisive action and achieve the best outcome possible. This article provides guidance for loan officers (LOs) managing R&W in the Income Analysis tool accessed through Encompass Desktop.
Access Income Analysis
From Encompass Desktop, first select your borrower from the pipeline.
Go to the tab menu at the bottom left of the desktop interface and select the Services tab.
Find Order Additional Services in the tab menu and click the Document icon.
Select CoreLogic Income Analysis in the From Service Providers list and click Retrieve.
The Income Analysis window will open.
Complete Rental Income Attestation
When the Income Analysis window opens, you should be taken automatically to the FannieMae Rental Attestation dialog interface.
Note: If you are not directed to the Fannie Mae Rental Attestation dialog when you open your Income Analysis order record, go to the Rental section of the LO View page and click Resend to Fannie Mae. The dialog will open.
Review the first four prompts in the dialog carefully and respond appropriately to each.
In the Update PITIA section, if necessary enter the most current PITIA figures in the PITI/mo and A/mo fields and click Update.
Make manual updates to the income as needed in the Update Other Rental Info section.
Click Send.
Review Fannie Mae Rep and Warrant Relief
When Income Analysis receives all of the necessary data, rental income from Schedule E submissions is automatically processed by Fannie Mae to confirm income accuracy and loan eligibility for Rep and Warrant Relief. The Rep and Warrant Relief status for your order will be reflected by the appearance of the FNMA summary block.
To view the FNMA summary block:
From the Income Calculation tab, scroll to the Rental section and click the Schedule E Rental Income accordion toggle.
The FNMA summary block will show to the right side of each property record under Schedule E Rental Income.
The FNMA summary block will contain the income calculations, and the color of the block will signify the Rep and Warrant Relief status. Rep and Warrant Relief status is displayed by the summary block with the following color code:
Green: When the FNMA summary block is outlined green, Fannie Mae has confirmed the submitted rental income for Rep and Warrant Relief. Income figures are locked in this scenario, preventing further edits.
Yellow: An FNMA summary block outlined yellow indicates that no DU Casefile ID has been provided.
Red: When the FNMA summary block is outlined red, either the submitted rental income has not been confirmed for Rep and Warrant Relief, or the rental income attestation must be completed and submitted.
If the block shows yellow and you need to provide a DU Casefile ID:
Click the FNMA summary block, enter the ID in the DU Casefile ID field, and click Resend.
If the block shows red and you have completed the rental income attestation, Fannie Mae has determined that the income does not meet Rep and Warrant Relief criteria.
Generate an Income Analysis Report
You can generate a PDF of the Income Analysis report from the Income Analysis window in the following ways.
Click Output Options and select View PDF to download a local PDF copy of the report.
Click Output Options and select Send PDF to eFolder to send a copy of the PDF to your Encompass eFolder.
Update LOS
You can update Encompass with the Fannie Mae monthly income figures from Income Analysis by clicking Update LOS, just to the right of Output Options.