Income calculation has always been one of the biggest friction points in mortgage lending.
Commission income.
Variable income.
Self-employed borrowers.
Rental income.
Part-time and multi-job scenarios.
One miscalculation can derail an approval, delay a closing, or trigger a costly repurchase risk.
In this episode, we sit down with Jim Carroll of Partners Bank to break down everything originators and leaders need to know about Fannie Mae’s new Income Calculator — and why it may fundamentally change how income is calculated, documented, and delivered.
What Is Fannie Mae’s New Income Calculator?
Fannie Mae recently introduced its enhanced Income Calculator tool designed to help lenders:
• Accurately calculate complex borrower income
• Improve consistency across underwriting teams
• Reduce manual errors
• Align income analysis directly with Selling Guide requirements
• Improve loan quality and mitigate repurchase risk
The tool supports multiple income types including:
• Self-employed income
• Rental income
• Variable and commission income
• Overtime and bonus income
• Business ownership structures
• Schedule C and K-1 scenarios
The Income Calculator helps standardize the interpretation of guidelines and ensures calculations align directly with Fannie Mae policy.
Jim walks us through:
• How the new calculator changes workflow
• Where loan officers get income wrong most often
• The biggest mistakes underwriters still see
• How to reduce back-and-forth between sales and ops
• Why this tool improves speed AND compliance
• How leaders should implement it across their teams
We also discuss whether tools like this move the industry closer to automation — and how originators can use technology to strengthen files before submission
= Episode Sponsors
TrueWork
Income verification shouldn’t require juggling dozens of vendors. TrueWork consolidates all major VOIE methods into one powerful platform, helping lenders increase completion rates, reduce costs, and close loans faster with verified data.
Learn more:
https://www.truework.com/2026-mikedup?utm_source__c=MikedUp&utm_medium__c=Podcast-Sponsorship&utm_campaign__c=Q1-2026-MikedUp
FundingShield
Wire fraud and cyber risk remain major threats at closing. FundingShield provides real-time transaction-level verification and certified wire fraud protection to safeguard funds and validate the parties and documents involved in every mortgage transaction.
Learn more:
https://www.fundingshield.com
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