Self-Employed Borrowers Face New Scrutiny from Fannie, Freddie

Orange County Register, June 11, 2020–Jeff Lazerson
Nearly one in 10 U.S. workers is self-employed, according to the U.S. Bureau of Labor Statistics. If you own 25% or more of a business, you are by mortgage definition, sell-employed. Starting Thursday, June 11, Fannie Mae and Freddie Mac are mandating additional standards to scrutinize self-employed borrowers to determine if the borrower’s income is stable and there is a reasonable expectation it will remain stable.