This episode is a part of Unlocking Loan Solutions with Radian, a micro-learning series for mortgage & real estate professionals, with video, audio, and job aid for each topic. Choose your preferred learning style and take your learning experience to a new level.

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In this episode, we explore the topic of Restricted Stock Unit (RSU) income and how it may be used towards mortgage qualification. We delve into the definitions, guidelines, and calculation methods used by Fannie Mae and Freddie Mac for this increasingly common form of compensation. We discuss:

• What are Restricted Stock Units (RSUs) and how do they work?
• Fannie Mae and Freddie Mac guidelines for using RSU income in mortgage qualification
• Differences between performance-based and time-based RSU vesting
• Documentation requirements for RSU income verification
• Scenarios demonstrating RSU income calculations under different guidelines

Resources

• Fannie Mae Selling Guide - B3-3.1-09, Other Sources of Income - Restricted Stock Units and Restricted Stock Employment Income
• Fannie Mae Selling Guide - B3-3.1-01, General Income Information - Continuity of Income
• Freddie Mac Seller/Servicer Guide - 5303.1, Employed income
• Stockopedia - 200 day Moving Average

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© 2024 Radian Group Inc. All Rights Reserved. 550 East Swedesford Road, Suite 350, Wayne, PA 19087. "Radian" is a brand of Radian Group Inc., including its licensed insurance affiliates. Mortgage insurance is provided and underwritten by Radian Guaranty Inc., a wholly owned subsidiary of Radian Group Inc. with home offices at 550 East Swedesford Road, Suite 350, Wayne, PA 19087. Radian Guaranty Inc. is a monoline mortgage insurance company licensed to write business in all 50 states, the District of Columbia and Guam. Radian Group Inc. and its subsidiaries and affiliates make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. Redistribution or reproduction of all or part of the contents without Radian’s prior written consent is expressly prohibited. Scenarios provided for illustrative purposes only do not constitute a commitment or the guarantee of a specified rate. Determination of eligibility for a particular program or exemption is made by the relevant authority and not by Radian Group Inc. or its subsidiaries and/or affiliates.

This episode is a part of Unlocking Loan Solutions with Radian, a micro-learning series for mortgage & real estate professionals, with video, audio, and job aid for each topic. Choose your preferred learning style and take your learning experience to a new level.

• Watch the Video
• Download the Job Aid
• All episodes

In this episode, we delve into the complex and often misunderstood topic of non-traditional credit history in mortgage loan underwriting. Non-traditional credit history refers to alternative forms of credit that can be used when traditional accounts like student loans, mortgages, credit cards, or automobile loans are not present. We will explore:

• What is a non-traditional credit history?
• Fannie Mae’s Eligibility Requirements for non-traditional credit
• Underwriting non-traditional credit
• Scenarios to understand the application of non-traditional credit in mortgage loan underwriting

Resources

Fannie Mae Selling Guide

• Section B3-5.4, Nontraditional Credit History
• B3-5.4-01, Eligibility Requirements for Loans with Nontraditional Credit
• B3-5.4-02, Number and Types of Nontraditional Credit References
• B3-5.4-03, Documentation and Assessment of a Nontraditional Credit History
• B3-2-03, Risk Factors Evaluated by DU
• B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction
• B2-2-06, Homeownership Education and Housing Counseling

Freddie Mac Seller/Servicer Guide

• 5201.1 Credit assessment with Loan Product Advisor®

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© 2024 Radian Group Inc. All Rights Reserved. 550 East Swedesford Road, Suite 350, Wayne, PA 19087. "Radian" is a brand of Radian Group Inc., including its licensed insurance affiliates. Mortgage insurance is provided and underwritten by Radian Guaranty Inc., a wholly owned subsidiary of Radian Group Inc. with home offices at 550 East Swedesford Road, Suite 350, Wayne, PA 19087. Radian Guaranty Inc. is a monoline mortgage insurance company licensed to write business in all 50 states, the District of Columbia and Guam. Radian Group Inc. and its subsidiaries and affiliates make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. Redistribution or reproductio

Recognizing and understanding the behaviors of Millennial and Gen Z homebuyers can empower loan officers and real estate agents to engage these distinct generations. Listen in as Tom Miller, Regional Vice President of MI Sales, and Brenda Smucker, Vice President of Learning and Development, discuss this ever-changing topic.

In this episode, we will explore:

• Interesting statistics comparing the different generations
• Constructive ways to engage with potential borrowers and homebuyers
• How each generation has different views and preferences when buying a home

For more information, download Radian's infographic on The Millennial and Gen Z Homebuyer.


© 2024 Radian Group Inc. All Rights Reserved. 550 East Swedesford Road, Suite 350, Wayne, PA 19087. Radian Group Inc. and its subsidiaries and affiliates make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. Redistribution or reproduction of all or part of the contents without Radian’s prior written consent is expressly prohibited. The content presented is intended to convey general information and is for informational purposes only and does not constitute legal or accounting advice or opinions.