TIP OF THE DAY- FREDDIE EMPLOYMENT CONTRACTS

TIP OF THE DAY- FREDDIE EMPLOYMENT CONTRACTS

Employment contracts

(i) Employment contracts in the educational industry: It is common for Borrowers who work in the educational industry, such as teachers, to be employed under renewable or term employment contracts.For the educational field, if the Borrower provides an annually renewable or term contract, it is reasonable to consider continuance of receipt, provided the Seller does not have knowledge or documentation to the contrary.

None

(ii) Employment contracts in other industries:If an employment contract is provided, it may also be considered for the purposes of determining stable monthly income.When making the determination of employment history, income stability and the monthly income amount, the Seller must take into consideration factors such as whether or not employment contracts are reasonably common to the particular employment field and/or region, the pay structure outlined within the terms of the contract and whether the Borrower has demonstrated the ability to maintain consistent employment and income with this form or a similar form of pay structure over the most recent two years.

Obtain a documented two-year history of income and employment in the same or a similar employment field or industry when the terms of the employment contract do not include a base non-fluctuating pay structure

 

justin brown