source:
  type: regulation
  id: fhlmc-5301
  authority: "FHLMC Single-Family Seller/Servicer Guide Chapter 5301 — General Requirements for All Stable Monthly Income"
  description: "FHLMC Single-Family Guide §5301.1 establishes general stable-\nmonthly-income requirements: stable income definition (verified\ngross monthly income reasonably expected to continue ≥3 years);\nSeller must determine source and amount are stable with consistent\nlevel of earnings; cryptocurrency-income exclusion; documentation\nretention in Mortgage file; 2-year history baseline; no-qualify-on-\nincome-contradicted-by-info rule. Fills FHLMC Selling Guide\nChapter 5300 series gap.\n"
obligations:
- id: fhlmc-5301-stable-income-3-year-continuance
  canonical_id: fhlmc-5301-stable-income-3-year-continuance
  section: "FHLMC Single-Family Guide §5301.1(b) — Stable monthly income from verifiable sources expected to continue 3 years"
  description: '[LENDER] (Seller) shall ensure stable monthly income is the

    Borrower''s verified gross monthly income from all acceptable and

    verifiable sources that can reasonably be expected to continue

    for at least the next three years. The 3-year-continuance

    expectation is foundational to FHLMC qualifying-income analysis.

    '
  type: do
  audit_question: For every income source used to qualify a Borrower for a FHLMC loan, can [LENDER] evidence (a) verification, (b) acceptability/verifiability of source, and (c) reasonable expectation of continuance for at least 3 years?
  workflow_phase: loan_origination
  owner_role: underwriting_manager
  secondary_owner_role: loan_processor
  cadence: per-income-source
  consequence: Income without 3-year-continuance reasonable expectation is not stable monthly income; Selling Guide breach + R&W exposure if used to qualify.
  tags:
  - round-d
  - regulator-direct
  - fhlmc
  - selling-guide
  - stable-monthly-income
  - 3-year-continuance
  - promoted
  primary_source:
    tier: 1
    authority: "FHLMC Single-Family Guide §5301.1(b) — General requirements for all stable monthly income"
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/app/guide/
    snapshot_id: fbba421721d90cb1
    fetched_at: '2026-05-25T14:09:48Z'
    content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
    paragraph_quote: 'from all acceptable and verifiable sources that can reasonably be expected to continue for at least the next three years.

      '
    drafter_attestation: "Copied verbatim from snapshot fbba421721d90cb1. §5301.1(b) 3-year-\ncontinuance operative phrase. Quote starts mid-sentence to avoid\nU+2019 curly apostrophe in \"Borrower's verified gross monthly\nincome\"; the verified-gross-income and Borrower context paraphrased\nin description.\n"
  promoted_at: '2026-05-25T20:31:18+00:00'
  promoted_from: fhlmc-5301-roundd-v1.yaml
  program_review: Does the program ensure qualifying income is verified gross monthly income from acceptable/verifiable sources reasonably expected to continue at least 3 years?
  file_review: Review each qualifying income source for verification, source acceptability, and the 3-year continuance basis. The compliance person judges the reasonableness of the continuance expectation.
  judgment: true
- id: fhlmc-5301-seller-determine-source-and-amount-stable
  canonical_id: fhlmc-5301-seller-determine-source-and-amount-stable
  section: "FHLMC Single-Family Guide §5301.1(b) — Seller must determine source and amount of income are stable"
  description: "For each income source used to qualify the Borrower, [LENDER]\n(Seller) shall determine that BOTH the source AND the amount of\nthe income are stable, with a consistent level of earnings.\nStability must be evaluated on both axes — source stability\nalone is insufficient if the amount fluctuates inconsistently.\n"
  type: do
  audit_question: For every income source [LENDER] used to qualify, can [LENDER] evidence its source-stability AND amount-stability analysis (with documentation of the consistent earnings level)?
  workflow_phase: loan_origination
  owner_role: underwriting_manager
  secondary_owner_role: loan_processor
  cadence: per-income-source
  consequence: Qualifying on unstable source or amount is a Selling Guide breach + R&W exposure.
  tags:
  - round-d
  - regulator-direct
  - fhlmc
  - selling-guide
  - stable-monthly-income
  - source-amount-stability
  - promoted
  primary_source:
    tier: 1
    authority: "FHLMC Single-Family Guide §5301.1(b) — General requirements for all stable monthly income"
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/app/guide/
    snapshot_id: fbba421721d90cb1
    fetched_at: '2026-05-25T14:09:48Z'
    content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
    paragraph_quote: 'the Seller must determine that both the source and the amount of the income are stable, with a consistent level of earnings.

      '
    drafter_attestation: "Copied verbatim from snapshot fbba421721d90cb1. §5301.1(b) source-\nand-amount-stable operative requirement.\n"
  promoted_at: '2026-05-25T20:31:18+00:00'
  promoted_from: fhlmc-5301-roundd-v1.yaml
  program_review: Does the program require a documented determination that BOTH the source AND the amount of each qualifying income are stable with a consistent earnings level?
  file_review: Review the income analysis for both-axes stability (source and amount); the compliance person judges whether the stability conclusion is supported.
  judgment: true
- id: fhlmc-5301-cryptocurrency-not-eligible
  canonical_id: fhlmc-5301-cryptocurrency-not-eligible
  section: "FHLMC Single-Family Guide §5301.1(b) — Cryptocurrency income not eligible for qualification"
  description: '[LENDER] (Seller) shall not use income that is paid to the

    Borrower in cryptocurrency for qualification. Crypto-paid

    income is categorically excluded from FHLMC qualifying income

    regardless of source-or-amount stability. (Parallels FNMA

    B3-3.1-01 virtual-currency exclusion.)

    '
  type: refrain
  audit_question: For every Borrower with disclosed cryptocurrency income, can [LENDER] evidence that no portion of that crypto-paid income was used to qualify the Borrower for a FHLMC loan?
  workflow_phase: loan_origination
  owner_role: underwriting_manager
  secondary_owner_role: chief_credit_officer
  cadence: per-loan-with-crypto-income
  consequence: Using cryptocurrency income to qualify a FHLMC loan is a Selling Guide breach + R&W exposure.
  tags:
  - round-d
  - regulator-direct
  - fhlmc
  - selling-guide
  - cryptocurrency
  - virtual-currency
  - income-qualification
  - promoted
  primary_source:
    tier: 1
    authority: "FHLMC Single-Family Guide §5301.1(b) — Cryptocurrency"
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/app/guide/
    snapshot_id: fbba421721d90cb1
    fetched_at: '2026-05-25T14:09:48Z'
    content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
    paragraph_quote: 'Income that is paid to the Borrower in cryptocurrency may not be used for qualification.

      '
    drafter_attestation: "Copied verbatim from snapshot fbba421721d90cb1. §5301.1(b)\ncryptocurrency-not-eligible operative restriction.\n"
  promoted_at: '2026-05-25T20:31:19+00:00'
  promoted_from: fhlmc-5301-roundd-v1.yaml
  program_review: Does the program account for the categorical exclusion of cryptocurrency-paid income from qualifying, regardless of stability?
  file_review: Spot-check files disclosing crypto income; confirm no crypto-paid income was used to qualify.
  judgment: false
- id: fhlmc-5301-two-year-history-baseline
  canonical_id: fhlmc-5301-two-year-history-baseline
  section: "FHLMC Single-Family Guide §5301.1(c) — 2-year history baseline for stable income"
  description: 'In most instances, a two-year history of receiving a consistent

    level of income is required for the income to be considered

    stable and used for qualifying. While the source of income may

    vary, the Borrower must have a consistent level of income

    despite changes in the sources of income. [LENDER] (Seller)

    shall apply the 2-year history baseline, with the source-change

    / consistent-level carve-out preserving qualifying income

    across employer transitions in the same earnings level.

    '
  type: do
  audit_question: "For every income source [LENDER] used to qualify, can [LENDER] evidence at least a 2-year history of consistent receipt — OR document why the income qualifies under the source-change/consistent-amount carve-out?"
  workflow_phase: loan_origination
  owner_role: underwriting_manager
  secondary_owner_role: loan_processor
  cadence: per-income-source
  consequence: Sub-2-year history without documented qualifying carve-out is a Selling Guide breach.
  tags:
  - round-d
  - regulator-direct
  - fhlmc
  - selling-guide
  - stable-monthly-income
  - 2-year-history
  - promoted
  primary_source:
    tier: 1
    authority: "FHLMC Single-Family Guide §5301.1(c) — Income stability and history requirements"
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/app/guide/
    snapshot_id: fbba421721d90cb1
    fetched_at: '2026-05-25T14:09:48Z'
    content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
    paragraph_quote: 'In most instances, a two-year history of receiving a consistent level of income is required for the income to be considered stable and used for qualifying.

      '
    drafter_attestation: "Copied verbatim from snapshot fbba421721d90cb1. §5301.1(c) 2-year-\nhistory operative requirement.\n"
  promoted_at: '2026-05-25T20:31:19+00:00'
  promoted_from: fhlmc-5301-roundd-v1.yaml
  program_review: Does the program apply the 2-year consistent-receipt history baseline, accounting for the source-change/consistent-level carve-out across employer transitions?
  file_review: Confirm a ≥2-year consistent-receipt history per source, or documentation supporting the source-change/consistent-amount carve-out. The compliance person judges whether the carve-out fairly applies.
  judgment: true
- id: fhlmc-5301-no-qualify-when-info-contradicts-continuance
  canonical_id: fhlmc-5301-no-qualify-when-info-contradicts-continuance
  section: "FHLMC Single-Family Guide §5301.1(d) — Do not qualify with income contradicted by continuance info"
  description: '[LENDER] (Seller) shall NOT consider income for qualifying the

    Borrower if [LENDER] has knowledge, information or documentation

    that contradicts a reasonable expectation of continuance or

    probability of consistent receipt over at least the next three

    years. The categorical exclusion applies whenever contradictory

    info exists, regardless of other stability indicators.

    '
  type: refrain
  audit_question: For every income source [LENDER] used to qualify, can [LENDER] evidence (a) no knowledge of contradictory continuance information existed, or (b) if such information was identified, the income was excluded from qualifying?
  workflow_phase: loan_origination
  owner_role: underwriting_manager
  secondary_owner_role: chief_credit_officer
  cadence: per-income-source
  consequence: Qualifying with income [LENDER] knew/should-have-known would not continue 3 years is a Selling Guide breach + R&W exposure + potential fraud-screen escalation.
  tags:
  - round-d
  - regulator-direct
  - fhlmc
  - selling-guide
  - stable-monthly-income
  - continuance-contradiction
  - no-qualify-rule
  - promoted
  primary_source:
    tier: 1
    authority: "FHLMC Single-Family Guide §5301.1(d) — Income continuance requirements"
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/app/guide/
    snapshot_id: fbba421721d90cb1
    fetched_at: '2026-05-25T14:09:48Z'
    content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
    paragraph_quote: 'The Seller must not consider income for qualifying the Borrower if the Seller has knowledge, information or documentation that contradicts a reasonable expectation of continuance or probability of consistent receipt over at least the next three years.

      '
    drafter_attestation: "Copied verbatim from snapshot fbba421721d90cb1. §5301.1(d)\nno-qualify-contradicted-continuance operative restriction.\n"
  promoted_at: '2026-05-25T20:31:20+00:00'
  promoted_from: fhlmc-5301-roundd-v1.yaml
  program_review: Does the program ensure income is excluded from qualifying whenever the Seller has knowledge/information/documentation contradicting a reasonable expectation of consistent receipt over the next 3 years?
  file_review: Review the file for any contradictory continuance information; the compliance person judges whether such information existed and, if so, whether the income was properly excluded.
  judgment: true
_promotion_history:
- promoted_at: '2026-05-25T20:31:20+00:00'
  candidate_path: obligations\_remediation\round-d-investor-guides\fhlmc-5301-roundd-v1.yaml
  candidates_promoted: 5
  candidates_skipped_existing: 0
