How to Manage Freddie Mac® Rep & Warrant for Wage Income

  • Updated on Feb 26, 2026
  • Published on Sep 12, 2025
  • 4 minute(s) read
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Overview

Income Analysis rapidly provides you access to Freddie Mac® Rep and Warrant (R&W) results for wage borrower income. Results are available to originating lenders enrolled in the Freddie Mac (AIM) Check API Integration for Digitized Paystubs and W-2's Program. This enhanced loan framework streamlines the fulfillment process, reduces risk and enhances investor confidence through added protection against future repurchase demands.

When all data is submitted to Income Analysis, wage income is automatically processed by Freddie Mac® to confirm accuracy and eligibility for relief. The R&W status for your order is easy to identify as the results are indicated by the presence of a FHLMC Surround.

Consider the following:

  • Loan Officers and Underwriters can interact and submit wage income to Freddie Mac on the Income Calculation and LO View tabs.

  • Freddie Mac must be the selected investor for your loan to receive R&W relief results.  

  • You are not required to accept the calculations presented by Freddie Mac®. You have the option to manually update and underwrite loan file calculations with applicable supporting documentation.

  • If you’re an Encompass®-integrated user, you must click Update LOS to ensure the values between Income Analysis and your Loan Origination System (LOS) are aligned and updated.

Select the investor guideline

The Investor Guideline dropdown allows you to switch between investors and see alternative eligibility options. The Investor Guideline determines the set of investor rules that Income Analysis will use when calculating the income. When the initial order is submitted, the Investor Guideline will either have been chosen at that time or left blank. If the investor was left blank, then Income Analysis will use a conservative set of industry standard guidelines by default.

  1. From the Investor Guideline dropdown menu, select FHLMC (Freddie). A guideline option confirmation popup displays.

  2. Depending on the scenario, selectable options may appear in the popup. If presented with options, make your selections.

  3. Review the messaging, then click Save Changes.

  4. Observe the updated investor is reflected.

Identify the relief status

   

R&W results are indicated by the presence of a FHLMC Surround located in the Wage income section of the Income Calculation and LO View tabs. Each Surround is color coded, clickable and contains detailed feedback from the investor.  

  1. From the Income Calculation or LO View tabs, navigate to the Wage section.

  2. Observe the FHLMC Surround. The FHLMC Surround appears to the right of the record.

  3. Identify the relief status. Each Surround is color coded, clickable and contains details about the Wage income as indicated by Freddie Mac®.

    • Green indicates that Freddie Mac® has confirmed the income for relief.

    • Yellow indicates the Application Date and/or Employment Start Date may be missing for one or more companies per borrower.

    • Red indicates that the loan is eligible for relief, however a user has chosen to “Unaccept” Freddie Mac’s calculations.

    • Grey indicates that the loan is ineligible for relief.

Access the Freddie Mac® AIM investor popup

   

To access the Freddie Mac AIM investor popup, click the FHLMC Surround.

  • AIM Check Reference ID: This is the unique ID for AIM’s response that must be added to LPA to obtain R&W relief.

  • Freddie Mac Income Items: This summary displays AIM’s calculated values for base and other variable pay amounts. The summary includes document icons that allow you to view and print the associated documents.

  • Application Date: Use this field to enter the date the application was received for document age evaluation.

  • Employment Start Date VOE: A VOE date field is pre-populated, if a VOE was captured by Income Analysis OCR.

  • Employment Start Date 1003/LOS: Use this field to enter the borrower’s employment start date for evaluation of work history.

  • Freddie Monthly Income Calculation: Displays the AIM total calculated income value and includes a reminder to update LPA with the most recent AIM Check Reference ID.

  • Accept/Unaccept: These buttons allow you to accept or unaccept values returned by AIM. Unaccept the values to manually underwrite the file, for example.

  • Message: The Message box displays AIM response findings with all specific messages.

  • Comment: Use this field to add comments to the loan file for future reference.

  • Close: Use this button to exit the Freddie Mac AIM investor popup, without saving changes.

  • Save Changes: This button will save changes made to the loan file and trigger an action to resubmit to Freddie Mac AIM.

Unaccept the Freddie Mac® values to make edits

   

When Freddie Mac® is selected as the investor, Income Analysis will assume that you plan to use Freddie Mac’s income calculations to submit your loan for R&W relief. If Freddie’s calculations are accepted, the calculated income values are auto-populated and locked from making edits.

You are not required to use the Freddie Mac® AIM income calculations and may “Unaccept” them if you need to make changes.

  1. Click the FHLCM Surround to access the Freddie Mac AIM investor popup

  2. From the Freddie Monthly Income Calculation section, click Unaccept.

  3. Click Close to exit the investor popup. The fields are now unlocked for edits.

  4. Navigate to the income source you want to edit, then click Edit.

  5. Make your updates to the calculations.

  6. Add comments in the Comment box for future reference.

  7. Click Save Changes.

  8. Once your edits are complete, click Resend to Freddie Mac to send Freddie Mac the updated information. The Send Income to Freddie Mac popup displays.

  9. Use the checkboxes to select the income sources you would like to send to Freddie Mac, then click Send.  

  10. If you’re an Encompass®-integrated user, click Update LOS to send the updated calculations to your LOS.

Note: You can revert back to Freddie Mac’s original calculations at any time by clicking the FHLMC Surround and clicking Accept.

Outcome

You can manage Freddie Mac® R&W results for wage borrower income, update the investor, track the relief status, and unaccept values to make edits when necessary.

Governance