source:
  type: regulation
  id: fhlmc-5303.3
  authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.3 — Income while on temporary leave (10/02/24)
  description: "Freddie Mac Guide §5303.3 (Income while on temporary leave). Gap-fill (verbatim, ID-diff). \n"
obligations:
- id: fhlmc-5303.3-0
  canonical_id: fhlmc-5303.3-0
  section: Freddie Mac Guide 5303.3
  description: '5303.3 Income while on temporary leave: This section contains requirements and guidance related
    to: ■ Temporary leave from current employment – general requirements and guidance ■ Determining qualifying income
    and Borrower capacity to meet obligations while on temporary leave ■ Documentation requirements (a) Temporary
    …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.3 — Income while on temporary leave (10/02/24)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'This section contains requirements and guidance related to: ■ Temporary leave from current
      employment – general requirements and guidance ■ Determining qualifying income and Borrower capacity to meet
      obligations while on temporary leave ■ Documentation requirements (a) Temporary leave from current employment
      – general requirements and guidance Temporary leave from an employer may encompass various circumstances (e.g.,
      family and medical, short-term disability, maternity, other temporary leaves with or without pay). Temporary
      leave is generally short in duration. The period of time that a Borrower is on temporary leave may be determined
      by various factors such as applicable law, employer policies and short-term insurance policy and/or benefit
      terms. Leave ceases being considered temporary when the Borrower does not intend to return to the current
      employer or does not have a commitment from the current employer to return to employment. The requirements
      and guidance for income while on temporary leave do not extend to employer-initiated actions such as furloughs
      and layoffs.'
    drafter_attestation: Verbatim from Freddie Guide §5303.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.3-1
  canonical_id: fhlmc-5303.3-1
  section: Freddie Mac Guide 5303.3
  description: '5303.3 Income while on temporary leave: 303-48 Refer to Chapter 5305 regarding long-term disability
    income if the Seller has knowledge the Borrower has applied for, is receiving or will be receiving long-term
    disability benefits or long-term insurance benefits. (b) Determining qualifying income and Borrower capacity
    to…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.3 — Income while on temporary leave (10/02/24)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 303-48 Refer to Chapter 5305 regarding long-term disability income if the Seller has knowledge
      the Borrower has applied for, is receiving or will be receiving long-term disability benefits or long-term
      insurance benefits. (b) Determining qualifying income and Borrower capacity to meet obligations while on temporary
      leave During a temporary leave, a Borrower’s income may be reduced and/or completely interrupted. The Seller
      must determine that during and after the temporary leave the Borrower has capacity to repay the Mortgage and
      all other monthly obligations in accordance with Topics 5100 through 5500. The Seller’s determination must
      be based on required documentation, Seller knowledge and available information. (i) For Borrowers returning
      to their current employer prior to or on the first Mortgage payment due date For Borrowers returning to their
      current employer prior to or on the first Mortgage payment due date, the Seller may use for qualifying income
      the Borrower’s pre-leave gross monthly income. (ii) For Borrowers returning to their current employer after
      the first Mortgage payment due date ■ For Borrowers returning to their current employer after the first Mortgage
      payment due date, the Seller may use for qualifying income the Borrower’s gross monthly income amount being
      received for the duration of the temporary leave ■ For Borrowers returning to their current employer after
      the first Mortgage payment due date, in the event that the income has been reduced or interrupted, the Seller
      may use for qualifying income the monthly reduced income amount (this amount may be zero) being received for
      the duration of the leave combined with the Borrower’s available liquid assets, as necessary. Available liquid
      assets may be used as a partial or complete income supplement up to the amount of the income reduction. The
      “Asset calculation for establishing the debt payment-to-income ratio” described in Section 5307.1(b) does
      not apply to the calculation of assets as an income supplement when determining qualifying income and Borrower
      capacity to meet obligations while on temporary leave. Assets that are required for the transaction (e.g.,
      Down Payment, Closing Costs and reserves) may not be considered as available assets.
    drafter_attestation: Verbatim from Freddie Guide §5303.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.3-2
  canonical_id: fhlmc-5303.3-2
  section: Freddie Mac Guide 5303.3
  description: '5303.3 Income while on temporary leave: 303-49 ■ The total qualifying income must not exceed the
    Borrower’s pre-leave gross monthly income amount (c) Documentation requirements The following documentation
    is required for all Borrowers on temporary leave: ■ Documentation to verify the Borrower’s pre-leave income
    and emp…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.3 — Income while on temporary leave (10/02/24)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '303-49 ■ The total qualifying income must not exceed the Borrower’s pre-leave gross monthly
      income amount (c) Documentation requirements The following documentation is required for all Borrowers on
      temporary leave: ■ Documentation to verify the Borrower’s pre-leave income and employment in accordance with
      Topic 5300, regardless of leave status ■ Written statement, in the form of a signed letter or an e-mail directly
      from the Borrower, confirming the Borrower’s intent to return to the current employer and the intended date
      of return ■ Documentation generated by current employer confirming the Borrower’s eligibility to return to
      the current employer after temporary leave. Acceptable forms of employer documentation that the Seller may
      obtain from the Borrower include but are not limited to: ❑ An employer-approved leave request, ❑ A Family
      and Medical Leave Act document or other documentation generated by the employer or ❑ A third-party verifier
      on behalf of the employer In addition, the following documentation is required for Borrowers returning to
      the current employer after the first Mortgage payment due date: ■ Documentation evidencing amount and duration
      of all temporary leave income being used to qualify the Borrower (e.g., short- term disability benefits or
      insurance, sick leave benefits, temporarily reduced income from employer) that are being received during the
      temporary leave ■ All available liquid assets used to supplement the reduced income for the duration of the
      temporary leave must meet the requirements of and be verified in accordance with the Streamlined Accept Documentation
      or Standard Documentation requirements, as applicable, listed in Section 5501.3'
    drafter_attestation: Verbatim from Freddie Guide §5303.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.3-3
  canonical_id: fhlmc-5303.3-3
  section: Freddie Mac Guide 5303.3
  description: '5303.3 Income while on temporary leave: 303-50 ■ A written rationale explaining the analysis used
    to determine the qualifying income, regardless of the underwriting path'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.3 — Income while on temporary leave (10/02/24)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 303-50 ■ A written rationale explaining the analysis used to determine the qualifying income,
      regardless of the underwriting path
    drafter_attestation: Verbatim from Freddie Guide §5303.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
