source:
  type: guide
  id: fnma-sel-b3-3.3-07
  authority: Fannie Mae Selling Guide B3-3.3-07 — Restricted Stock Units and Restricted
    Stock Employment Income
  description: Fannie Mae Selling Guide B3-3.3-07 — Restricted Stock Units and Restricted
    Stock Employment Income.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-3.3-07-full
  canonical_id: fnma-sel-b3-3.3-07-full
  section: Fannie Mae Selling Guide B3-3.3-07 — Restricted Stock Units and Restricted
    Stock Employment Income
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-3.3-07 — Restricted Stock Units and Restricted
      Stock Employment 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: 'B3-3.3-07, Restricted Stock Units and Restricted Stock Employment
      Income (03/04/2026) Restricted stock units and restricted stock (referred to
      collectively as "restricted stock") are granted by an employer to its employees
      as a form of compensation based on either performance or time. They can be awarded
      as either stock or an equivalent cash value of the number of shares awarded
      and usually vest over a certain number of years. After they vest, the employee
      may sell the shares at the current price or hold the stock for future sale.
      The following table provides requirements for restricted stock income. Criteria
      Requirements Eligibility • Restricted stock must have vested and been distributed
      to the borrower without restrictions. • Sign-on bonuses received in the form
      of restricted stock that vest over any length of time are not eligible to be
      used as qualifying income. Published May 6, 2026 327 Criteria Requirements Documentation
      The lender must obtain • a completed Request for Veriﬁcation of Employment (
      Form 1005) that shows restricted stock distributions, or • the most recent paystub
      showing receipt of restricted stock income and two years'' W-2s. The lender
      must also document the following: • evidence stock is publicly traded; • current
      vesting schedule reﬂecting past and future vesting; • 200-day moving average
      stock price (for income paid in shares); and • brokerage or bank statement showing
      receipt of previous year(s) distribution of restricted stock and, at a minimum,
      the number of vested shares or cash equivalent. Additionally, a verbal VOE is
      required. See B3-3.1-04, Verbal Veriﬁcation of Employment, for speciﬁc requirements.
      Income History Performance-based awards: A minimum two-year history is recommended;
      however, income received for a shorter period, but no less than 12 months, may
      be considered acceptable if there are positive factors to reasonably oﬀset the
      shorter income history, such as • future vesting equal or greater than previous
      vesting and that will continue for at least 24 months; or • restricted stock
      income received for the previous 5 years from any employer. Time-based awards:
      A minimum 12-month history from the current employer is required. Income Continuance
      Performance-based awards: The lender is not required to verify continuance unless
      they have reason to believe the income may not continue. Time-based awards:
      • For one-time awards: The lender must document that income on the vesting schedule
      is expected to continue for at least three years from the note date. • For recurring
      awards: The lender is not required to verify continuance unless they have reason
      to believe the income may not continue. Published May 6, 2026 328 Criteria Requirements
      Determination of Qualifying Income The calculation method for restricted stock
      income will vary depending on whether payment is made in shares or cash. For
      income paid in shares: (200-day moving average of share price x total number
      of distributed vested shares (pre-tax) in most recent 24 months) / 24 months
      For income paid in cash: The cash distributed (pre-tax) equal to the total value
      of vested shares in the most recent 24 months / 24 months Note: When the borrower
      has a history of income ranging from 12-24 months, the lender may use the actual
      number of months the borrower has received the income rather than 24 months.
      Recent Related Announcements The table below provides references to recently
      issued Announcements related to this topic. Announcements Issue Date Announcement
      SEL-2026-02 March 04, 2026'
  judgment: false
