Employment Documentation Provided by the Borrower

The following table provides requirements for documentation provided by the borrower.

	Requirements — Paystubs or W–2s
	The paystub must be dated no earlier than 30 days prior to the initial loan application date and it must include all year-to-date earnings. Additionally, the paystub must include sufficient information to appropriately confirm income; otherwise, additional documentation must be obtained. Paystubs must comply with section Allowable Age of Credit Documents and Federal Income Tax Returns.
	IRS W-2 form must cover the most recent one-year period. The W-2 forms must clearly identify the borrower as the employee. ”Most recent” W-2 is defined as the W-2 for the calendar year prior to the current calendar year. Alternative documentation, such as an IRS Wage and Income (W-2) Transcript, a written Request for Verification of Employment FNMA form 1005 or 1005S or the final year-to-date paystub, may be used as long as adequate information is provided.
	Documents must be computer-generated or typed by the borrower’s employer(s), although paystubs that the borrower downloads from the Internet are also acceptable. Documents must clearly identify the employer’s name and source of information.
	The documents must clearly identify the borrower as the employee.
	The information must be complete and legible.
	The original source of the information must be a third party, such as the borrower's human resources department, personnel office, payroll department, company's payroll vendor, or supervisor.

	Requirements — Tax Returns
	When provided, personal federal income tax returns must be copies of the original returns that were filed with the IRS. All supporting schedules must be included. Alternatively, the originator may obtain applicable transcripts of federal income tax returns. See Section Requirements and Uses of IRS IVES Request for Transcript of Tax Return Form 4506-C. “Most recent” tax return is defined as the last return scheduled to have been filed with the IRS. See Section Allowable Age of Credit Documents and Federal Income Tax Returns.
	The information must be complete and legible.
	The tax return must be signed by the borrower unless the underwriter has obtained one of the following signature alternatives: documentation confirming that the tax returns were filed electronically, a completed IRS Form 4506–C (signed by the borrower) for the year in question, or IRS transcripts that validate the tax return.