source:
  type: guide
  id: fnma-sel-b3-3.3-09
  authority: Fannie Mae Selling Guide B3-3.3-09 — Temporary Leave Income
  description: Fannie Mae Selling Guide B3-3.3-09 — Temporary Leave Income.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-3.3-09-full
  canonical_id: fnma-sel-b3-3.3-09-full
  section: Fannie Mae Selling Guide B3-3.3-09 — Temporary Leave Income
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-3.3-09 — Temporary Leave Income
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B3-3.3-09, Temporary Leave Income (03/04/2026) Temporary leave
      from work is generally employee-initiated, short in duration and for reasons,
      including, but not limited to maternity or parental leave, short-term medical
      disability, or other temporary leave types acceptable by law or to the borrower''s
      employer. Borrowers on temporary leave may or may not be paid during their absence
      from work. Note: Mandatory leave initiated by an employer, such as a furlough
      or layoﬀ, is not considered Published May 6, 2026 330 temporary leave regardless
      of an expected return to work date. For income from unemployment beneﬁts received
      as a result of mandatory leave initiated by an employer, see B3-3.4-17, Unemployment
      Beneﬁts Income. If a lender is made aware that a borrower will be on temporary
      leave at the time of the loan closing and that borrower''s income is needed
      to qualify for the loan, the lender must determine allowable income and conﬁrm
      employment as described below. The following table provides requirements for
      temporary leave income. Criteria Requirements Documentation The lender must
      obtain • documentation to support the borrower''s qualifying income in accordance
      with the speciﬁc income type in Section B3-3.3, Sources of Employment-Related
      Income, and must include: ⚬ the amount and duration of the borrower''s "temporary
      leave income," which may require multiple documents or sources depending on
      the type and duration of the leave period; and ⚬ the amount of the "regular
      employment income" the borrower received prior to the temporary leave. Regular
      employment includes, but is not limited to, the income the borrower receives
      from employment on a regular basis that is eligible for qualifying purposes
      (for example, base pay, commissions, and bonus). • written conﬁrmation from
      the borrower of their intent to return to work; • documentation produced by
      the employer (or a designee of the employer when the employer is using the services
      of a third-party to administer employee leave) that conﬁrms the borrower''s
      expected return to work date. The documentation may be provided to the lender
      by the borrower, the employer, or the employer''s designee. Acceptable documentation
      may include, but is not limited to: ⚬ previous correspondence from the employer
      or designee that speciﬁes the duration of leave or expected return date, or
      ⚬ a computer printout from an employer or designee''s system of record. (This
      documentation does not have to comply with the Allowable Age of Credit Documents
      policy in B1-1-03, Allowable Age of Credit Documents and Federal Income Tax
      Returns.) Additionally, a verbal VOE is required. See B3-3.1-04, Verbal Veriﬁcation
      of Employment, for speciﬁc requirements. If the employer conﬁrms the borrower
      is currently on temporary leave, the lender must consider the borrower employed.
      Published May 6, 2026 331 Criteria Requirements Income History The borrower''s
      employment and income history must meet standard eligibility requirements as
      described in Section B3-3, Sources of Employment-Related Income. Income Continuance
      Income continuance must be established by income type as described in Section
      B3-3.3, Sources of Employment Related Income. The lender must not receive any
      evidence or information from the borrower''s employer to indicate the borrower
      does not have the right to return to work after the leave period. Published
      May 6, 2026 332 Criteria Requirements Determination of Qualifying Income If
      the borrower will return to work as of the ﬁrst loan payment date, the lender
      can consider the borrower''s regular employment income in qualifying. If the
      borrower will not return to work as of the ﬁrst loan payment date, the lender
      must use the lesser of the borrower''s temporary leave income (if any) or regular
      employment income. If the borrower''s temporary leave income is less than their
      regular employment income, the lender may supplement the temporary leave income
      with available liquid ﬁnancial reserves (see B3-4.1-01, Minimum Reserve Requirements).
      The following are instructions on how to calculate the "supplemental income":
      Supplemental income amount = available liquid reserves divided by the number
      of months of supplemental income • Available liquid reserves: subtract any funds
      needed to complete the transaction (down payment, closing costs, other required
      debt payoﬀ, escrows, and minimum required reserves) from the total veriﬁed liquid
      asset amount. • Number of months of supplemental income: the number of months
      from the ﬁrst loan payment date to the date the borrower will begin receiving
      their regular employment income, rounded up to the next whole number. After
      determining the supplemental income amount, the lender must calculate the total
      qualifying income. Total qualifying income = supplemental income + the temporary
      leave income The resulting, total qualifying income may not exceed the borrower''s
      regular employment income. Example Regular income amount: $6,000 per month Temporary
      leave income: $2,000 per month Total veriﬁed liquid assets: $30,000 Funds needed
      to complete the transaction: $18,000 Available liquid reserves: $12,000 First
      payment date: July 1 Date borrower will begin receiving regular employment income:
      November 1 Supplemental income: $12,000/4 = $3,000 Total qualifying income:
      $3,000+$2,000 = $5,000 For loan caseﬁles underwritten with DU, refer to the
      DU Job Aids, for data entry guidance. Note: These requirements apply if the
      lender becomes aware through the employment and income veriﬁcation process that
      the borrower is on temporary leave. If a borrower is not currently on temporary
      leave, the lender must not ask if they intend to take leave in the future. Recent
      Related Announcements Published May 6, 2026 333 The table below provides references
      to recently issued Announcements related to this topic. Announcements Issue
      Date Announcement SEL-2026-02 March 04, 2026 Section B3-3.4, Other Sources of
      Income'
  judgment: false
