Trailing Spouse Income requirements may change

Worldwide ERC reports that in its recently issued June 8 guidelines, among other changes, Fannie Mae reversed a long-standing policy that permitted mortgage applicants to include the income of trailing spouses in the household income data supplied to qualify for a loan sold to that organization, before the spouse actually had procured new employment. Going forward, its underwriting guidelines may have deleterious implications for relocating families, since transferees applying for mortgages can no longer include the co-borrower’s income, unless employment in the new location is secured and documented. Freddy Mac has retained its guidelines, however, that do allow the inclusion of a trailing co-borrower’s income.