source:
  type: regulation
  id: fhlmc-5303.4
  authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.4 — Automated income assessment using employed
    income data (12/17/25)
  description: "Freddie Mac Guide §5303.4 (Automated income assessment using employed income data). Gap-fill (verbatim,\
    \ ID-diff). \n"
obligations:
- id: fhlmc-5303.4-0
  canonical_id: fhlmc-5303.4-0
  section: Freddie Mac Guide 5303.4
  description: '5303.4 Automated income assessment using employed income data: (12/17/25) This section contains:
    ■ Overview ■ Eligible income types ■ Underwriting requirements ■ Data submission requirements, representation
    and warranty relief eligibility and documentation requirements ■ Closed Loans data submission requirements,
    representation and warranty …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.4 — Automated income assessment using employed
      income data (12/17/25)
    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: '(12/17/25) This section contains: ■ Overview ■ Eligible income types ■ Underwriting requirements
      ■ Data submission requirements, representation and warranty relief eligibility and documentation requirements
      ■ Closed Loans data submission requirements, representation and warranty relief eligibility and documentation
      requirements ■ Internal Revenue Service (IRS) Form 4506-C requirements (a) Overview Representation and warranty
      relief eligibility is contingent on the Seller’s compliance with all requirements as set forth in this section.
      (i) Automated income assessment Asset and income modeler (AIM) automated income assessment using employed
      income data, provides Sellers with the option to use certain Systems (as defined in Section 2401.1(b)) to
      determine whether the Seller is eligible for relief from enforcement of certain representations and warranties
      related to the Borrower’s income.'
    drafter_attestation: Verbatim from Freddie Guide §5303.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.4-1
  canonical_id: fhlmc-5303.4-1
  section: Freddie Mac Guide 5303.4
  description: '5303.4 Automated income assessment using employed income data: 303-51 The Seller must obtain the
    Borrower’s employed income data and submit all required data and information to the applicable System. Based
    on the data submitted, the System will assess for representation and warranty relief eligibility and return
    the results of the assessment…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.4 — Automated income assessment using employed
      income data (12/17/25)
    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: '303-51 The Seller must obtain the Borrower’s employed income data and submit all required
      data and information to the applicable System. Based on the data submitted, the System will assess for representation
      and warranty relief eligibility and return the results of the assessment. (ii) Automated income assessment
      of Closed Loans Sellers with access to Freddie Mac’s application programming interface (API) for automated
      income assessment with Loan Product Advisor® using employed income data may submit data from a Closed Loan
      (an existing Mortgage in which the Seller/Servicer or a Related Third Party has a beneficial ownership interest
      as defined in Section 2402.2(b)(iii)) for assessment. If the Seller is eligible for income representation
      and warranty relief for a Closed Loan, the API response file will return a Portable Document Format (PDF)
      document indicating eligibility (the “AIM Payroll API R&W Assessment”). The Seller should contact its Freddie
      Mac representative or Customer Service at 800-FREDDIE to request Freddie Mac’s approval to submit Closed Loan
      data to the API. (b) Eligible income types The following tables describes income types that are eligible for
      an automated income assessment using employed income data: Eligible income types for an automated income assessment
      Eligible income types Ineligible employment/income characteristics Base non-fluctuating employment earnings,
      except military earnings (base, entitlements, reserve, National Guard) as described in Section 5303.1(c)(i).
      Earnings with the following employment/income characteristics as described in Section 5303.1(e) are not eligible
      for an automated income assessment using employed income data: ■ Earnings of a Borrower employed by a family
      member, the property seller, real estate broker or other interested party to the transaction ■ Employed income
      from foreign sources ■ Income reported on IRS Form 1099 for services The following fluctuating employment
      earnings as described in Section 5303.1(d): ■ Base fluctuating hourly employment earnings ■ Bonus'
    drafter_attestation: Verbatim from Freddie Guide §5303.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.4-2
  canonical_id: fhlmc-5303.4-2
  section: Freddie Mac Guide 5303.4
  description: '5303.4 Automated income assessment using employed income data: 303-52 ■ Commission ■ Overtime performed
    ■ Borrowers with business ownership interest(s) less than 25% (c) Underwriting requirements (i) General underwriting
    requirements The Seller must have no knowledge, information or documentation that contradicts an expectation
    that the inco…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.4 — Automated income assessment using employed
      income data (12/17/25)
    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: '303-52 ■ Commission ■ Overtime performed ■ Borrowers with business ownership interest(s) less
      than 25% (c) Underwriting requirements (i) General underwriting requirements The Seller must have no knowledge,
      information or documentation that contradicts an expectation that the income will continue for at least the
      next three years. The Seller must confirm that the information on the third-party verification report (“verification
      report”) or paystub(s) and W-2 form(s) is for the correct Borrower and employer, and all employed income data
      must be in U.S. dollars. (ii) Temporary leave of absence In the event the Borrower has taken a temporary leave
      of absence from their employment: ■ When a verification report is obtained, the verification report must indicate
      that, as of the date of the verification report, the Borrower has returned to work ■ When the employed income
      data is from the Borrower’s paystub(s) and W-2 form(s), the Seller must maintain documentation in the Mortgage
      file showing the Borrower has returned to work (iii) Age of documentation For the age of the documentation:
      ■ When a verification report is obtained, the expiration date of the verification report reflected in feedback
      messaging on the Last Feedback Certificate complies with the requirement in Section 5102.4 ■ When the employed
      income data has been obtained from the Borrower’s paystub(s) and W-2 form(s), the paystub and W-2 must comply
      with the requirements in Section 5102.4(b)'
    drafter_attestation: Verbatim from Freddie Guide §5303.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.4-3
  canonical_id: fhlmc-5303.4-3
  section: Freddie Mac Guide 5303.4
  description: '5303.4 Automated income assessment using employed income data: 303-53 (iv) Verification reports
    When a verification report is obtained, the method used to obtain the verification report must be an automated
    process where the employed income data is accessed directly from an electronic database of employer-provided
    income information. The emp…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.4 — Automated income assessment using employed
      income data (12/17/25)
    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: 303-53 (iv) Verification reports When a verification report is obtained, the method used to
      obtain the verification report must be an automated process where the employed income data is accessed directly
      from an electronic database of employer-provided income information. The employed income data on the verification
      report cannot be obtained from a written, verbal or e-mail verification of income performed by the service
      provider. (d) Data submission requirements, representation and warranty relief eligibility and documentation
      requirements (i) Data submission requirements The Seller must submit the most current employed income data
      to the applicable System. If after the initial submission, the Seller obtains an updated verification report,
      paystub(s) or W-2 form(s), the Seller must resubmit the employed income data. For Loan Product Advisor submissions,
      the Seller must submit the income amount used to underwrite the Mortgage. When a verification report is submitted
      to Loan Product Advisor, the Seller must investigate and resolve any inconsistent or contradictory information
      between the verification report, information contained in Form 65, Uniform Residential Loan Application (including
      the Borrower’s income and employment representations), and the Mortgage file and, if applicable, resubmit
      the correct information to Loan Product Advisor (ii) Representation and warranty relief results on Feedback
      Certificate If multiple Loan Product Advisor submissions are made, Seller’s eligibility for representation
      and warranty relief will be based on the results on the Last Feedback Certificate.
    drafter_attestation: Verbatim from Freddie Guide §5303.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.4-4
  canonical_id: fhlmc-5303.4-4
  section: Freddie Mac Guide 5303.4
  description: '5303.4 Automated income assessment using employed income data: 303-54 When income representation
    and warranty eligibility results are provided on the Last Feedback Certificate, the representation and warranty
    relief available is described in the following table: Income representation and warranty relief based on Feedback
    Certificate result E…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.4 — Automated income assessment using employed
      income data (12/17/25)
    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: '303-54 When income representation and warranty eligibility results are provided on the Last
      Feedback Certificate, the representation and warranty relief available is described in the following table:
      Income representation and warranty relief based on Feedback Certificate result Eligibility result Representation
      and warranty relief Eligible The Seller is relieved from enforcement of the following representations and
      warranties: 1. Accuracy of the income calculation related to eligible income types on the verification report
      or paystub(s) and W-2 form(s), and 2. Accuracy and integrity of the data on the verification report Note:
      The Seller is not relieved from the representations and warranties related to the accuracy and integrity of
      the data when obtained from the Borrower’s paystub(s) and W-2 form(s). Partial When partial income representation
      and warranty relief is granted for a source(s) as confirmed by the feedback message, the Seller is relieved
      from enforcement of the following representations and warranties: 1. Accuracy of the income calculation related
      to eligible income types on the verification report or paystub(s) and W-2 form(s), and 2. Accuracy and integrity
      of the data on the verification report Note: The Seller is not relieved from the representations and warranties
      related to the accuracy and integrity of the data when obtained from the Borrower’s paystub(s) and W-2 form(s).
      Not eligible The Seller is not eligible for relief from enforcement of representations and warranties related
      to the Borrower’s income. Exception: The Seller is relieved from enforcement of representations and warranties
      related to the Borrower’s income when a message is returned on the Freddie Mac Income Calculator Certificate
      indicating such relief. See table below titled “Representation and warranty relief'
    drafter_attestation: Verbatim from Freddie Guide §5303.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.4-5
  canonical_id: fhlmc-5303.4-5
  section: Freddie Mac Guide 5303.4
  description: '5303.4 Automated income assessment using employed income data: 303-55 Income representation and
    warranty relief based on Feedback Certificate result Eligibility result Representation and warranty relief based
    on Freddie Mac Income Calculator Certificate result”. Unavailable The Seller is not eligible for relief from
    enforcement of representa…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.4 — Automated income assessment using employed
      income data (12/17/25)
    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: '303-55 Income representation and warranty relief based on Feedback Certificate result Eligibility
      result Representation and warranty relief based on Freddie Mac Income Calculator Certificate result”. Unavailable
      The Seller is not eligible for relief from enforcement of representations and warranties related to the Borrower’s
      income. Exception: The Seller is relieved from enforcement of representations and warranties related to the
      Borrower’s income when a message is returned on the Freddie Mac Income Calculator Certificate indicating such
      relief. See table below titled “Representation and warranty relief based on Freddie Mac Income Calculator
      Certificate result”. (iii) Documentation requirements based on representation and warranty relief result on
      Feedback Certificate When income representation and warranty eligibility results are provided on the Last
      Feedback Certificate, the documentation requirements are described in the following table: Documentation requirements
      based on representation and warranty relief result on Feedback Certificate Eligibility result Income documentation
      requirements Eligible The Seller must maintain in the Mortgage file, as applicable: ■ Submitted verification
      report, if obtained ■ Paystub(s) and W-2 form(s) except when a verification report is obtained ■ Last Freddie
      Mac Income Calculator Certificate, if obtained Paystub and W-2 documentation must meet the requirements of
      Section 5302.2. When there are multiple income sources and one or more is eligible for income representation
      and warranty relief, for the income source(s) not eligible for representation and warranty relief,'
    drafter_attestation: Verbatim from Freddie Guide §5303.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.4-6
  canonical_id: fhlmc-5303.4-6
  section: Freddie Mac Guide 5303.4
  description: '5303.4 Automated income assessment using employed income data: 303-56 Documentation requirements
    based on representation and warranty relief result on Feedback Certificate Eligibility result Income documentation
    requirements the Seller must either: 1. Verify and document the income as required by the Guide, or 2. Remove
    the income and resubm…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.4 — Automated income assessment using employed
      income data (12/17/25)
    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: '303-56 Documentation requirements based on representation and warranty relief result on Feedback
      Certificate Eligibility result Income documentation requirements the Seller must either: 1. Verify and document
      the income as required by the Guide, or 2. Remove the income and resubmit the Mortgage to Loan Product Advisor
      Partial The Seller must maintain in the Mortgage file, as applicable: ■ Submitted verification report, if
      obtained ■ Paystub(s) and W-2 form(s), except when a verification report is obtained ■ Last Freddie Mac Income
      Calculator Certificate, if obtained Paystub and W-2 documentation must meet the requirements of Section 5302.2.
      When there are multiple income sources and one or more income sources are needed to qualify the Borrower,
      document the income source(s) as required by the feedback messages. Not eligible The income must be verified
      and documented as required by the Guide. Unavailable The income must be verified and documented as required
      by the Guide. (iv) Representation and warranty relief results on Freddie Mac Income Calculator Certificate
      When income representation and warranty eligibility results are provided on the Freddie Mac Income Calculator
      Certificate, the representation and warranty relief available is described in the following table:'
    drafter_attestation: Verbatim from Freddie Guide §5303.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.4-7
  canonical_id: fhlmc-5303.4-7
  section: Freddie Mac Guide 5303.4
  description: '5303.4 Automated income assessment using employed income data: 303-57 Income representation and
    warranty relief based on Freddie Mac Income Calculator Certificate result Eligibility result Representation
    and warranty relief Eligible The Seller is relieved from enforcement of the representation and warranty for
    the accuracy of the income calc…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.4 — Automated income assessment using employed
      income data (12/17/25)
    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: '303-57 Income representation and warranty relief based on Freddie Mac Income Calculator Certificate
      result Eligibility result Representation and warranty relief Eligible The Seller is relieved from enforcement
      of the representation and warranty for the accuracy of the income calculation related to each eligible income
      type that is on the paystub(s) and W-2 form(s). Not eligible The Seller is not eligible for relief from enforcement
      of representations and warranties related to the Borrower’s income. (v) Documentation requirements based on
      representation and warranty relief result on Freddie Mac Income Calculator Certificate When income representation
      and warranty eligibility results are provided on the Freddie Mac Income Calculator Certificate, the documentation
      requirements are described in the following table: Documentation requirements based on representation and
      warranty relief result on Freddie Mac Income Calculator Certificate Eligibility result Income documentation
      requirements Eligible The Seller must maintain in the Mortgage file: ■ The Freddie Mac Income Calculator Certificate
      reflecting the calculated income amount for each income source used to underwrite the Mortgage ■ Paystub(s)
      and W-2 form(s) Paystub and W-2 documentation must meet the requirements of Section 5302.2. When there are
      multiple income sources and one or more is eligible for income representation and warranty relief, for the
      income source(s) not eligible for representation and warranty relief, the Seller must verify and document
      the income as required by the Guide.'
    drafter_attestation: Verbatim from Freddie Guide §5303.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.4-8
  canonical_id: fhlmc-5303.4-8
  section: Freddie Mac Guide 5303.4
  description: '5303.4 Automated income assessment using employed income data: 303-58 Documentation requirements
    based on representation and warranty relief result on Freddie Mac Income Calculator Certificate Eligibility
    result Income documentation requirements Not eligible The income must be verified and documented as required
    by the Guide. (e) Closed Loan…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.4 — Automated income assessment using employed
      income data (12/17/25)
    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: '303-58 Documentation requirements based on representation and warranty relief result on Freddie
      Mac Income Calculator Certificate Eligibility result Income documentation requirements Not eligible The income
      must be verified and documented as required by the Guide. (e) Closed Loans data submission requirements, representation
      and warranty relief eligibility and documentation requirements (i) Closed Loans data submission requirements
      For Closed Loans with an automated income assessment, the Seller must: ■ Submit the employed income data used
      in the last Loan Product Advisor submission to the API for an automated income assessment using employed income
      data, and ■ Investigate and resolve any inconsistent or contradictory information between employed income
      data, information contained in Form 65 (including the Borrower’s income and employment representations) and
      the Mortgage file (ii) Representation and warranty relief provided on the AIM Payroll API R&W Assessment The
      AIM Payroll API R&W Assessment will only be returned when the Closed Loan is eligible for income representation
      and warranty relief. When the AIM Payroll API R&W Assessment indicates the Closed Loan is eligible for income
      representation and warranty relief, the Seller is relieved from enforcement of representation and warranty
      for the accuracy of the income calculation related to eligible income types described in Section 5303.4(b)
      that are on the paystub(s) and W-2 form(s). (iii) Documentation requirements based on representation and warranty
      relief result on AIM Payroll API R&W Assessment'
    drafter_attestation: Verbatim from Freddie Guide §5303.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5303.4-9
  canonical_id: fhlmc-5303.4-9
  section: Freddie Mac Guide 5303.4
  description: '5303.4 Automated income assessment using employed income data: 303-59 When the AIM Payroll API R&W
    Assessment indicates the Closed Loan is eligible for income representation and warranty relief, the Seller must
    maintain in the Mortgage file all of the following: ■ AIM Payroll API R&W Assessment ■ Paystub(s) ■ W-2 form(s)
    For income source(s)…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5303.4 — Automated income assessment using employed
      income data (12/17/25)
    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: '303-59 When the AIM Payroll API R&W Assessment indicates the Closed Loan is eligible for income
      representation and warranty relief, the Seller must maintain in the Mortgage file all of the following: ■
      AIM Payroll API R&W Assessment ■ Paystub(s) ■ W-2 form(s) For income source(s) submitted to Loan Product Advisor
      that are not eligible for representation and warranty relief, the Seller must verify and document the income
      as required by the Guide. (f) IRS Form 4506-C requirements For Mortgages using employed income data obtained
      from paystub(s) and W-2(s), the IRS form 4506-C documentation requirements for Section 5302.5 apply. For Mortgages
      that receive an income representation and warranty result of either “Eligible” or “Partial” with a feedback
      message indicating that no further documentation is required for the income reflected on the verification
      report, if all the income of a Borrower is from an eligible income type described in Section 5303.4(b) and
      is on the verification report, the Seller does not need to obtain the following: ■ A signed IRS Form 4506-C
      (or an alternate form acceptable to the IRS that authorizes the release of comparable tax information to a
      third party), or ■ A signed Commonwealth of Puerto Rico Form 2907 or Form 4506-C (or an alternate form that
      authorizes the release of comparable tax information to a third party) for income that is derived from sources
      in Puerto Rico, Guam or the U.S. Virgin Islands and is exempt from federal income taxation under the Internal
      Revenue Code'
    drafter_attestation: Verbatim from Freddie Guide §5303.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
