d. Documentation Guidelines for Borrowers-Not Self Employed (continued)

Subject and Reference

Documentation Classification

Verifying previous employment (section 2 of this chapter)

Use a Verification of Employment (VOE) or any of the following, covering the 2 year period prior to closing:

·   W-2 Forms

·   Income information obtained from the IRS via 1 of the following forms:

-   Form 8821 (or alternate form acceptable to the IRS that collects comparable information)

-   Form 4506 (or alternate form acceptable to the IRS that collects comparable information)

No VOE is required if the borrower has been with the same employer for 1 year and W-2 Forms for 1 previous year have been collected.

·   No W-2 Forms are required for a borrower on active duty.

·   No W-2 Forms are required if all of the following are met:

-   Borrower with same employer >2 years

-   Employer phone contact verifies the length of employment and current status (still employed)

-   Borrower not self-employed or commissioned

-   Bonus, overtime, or secondary income not needed to qualify

-   Stable monthly income to be determined by using current base pay only (rather than total earnings)

-   Borrower signs 1 of the following for the previous 2 tax years:

-   - Form 8821, and

-   - Form 4506.