Origination ActivitiesQuestion 231 of 400
During processing, an underwriter needs to verify a salaried borrower's income. Which document set most directly supports qualifying income for a W-2 wage earner?
a.Recent pay stubs, prior-year W-2 forms, and a verification of employment
b.Two years of Schedule C business tax returns and a profit-and-loss statement
c.A signed gift letter and the donor's bank statement
d.The purchase contract and the seller's disclosure statement
Explanation
For a W-2 wage earner, income is documented with recent pay stubs, prior-year W-2s, and often a verification of employment (VOE). Schedule C and P&L statements apply to self-employed borrowers, and gift letters or contracts document other loan facts, not wage income.
Practice all 400 questions free — no signup required.
Related questions on this topic
- A charge for a service the consumer cannot shop for, provided by an affiliate of the creditor, is subject to which tolerance?
- Which pairing correctly matches the charge to its tolerance category?
- At closing, which of these is most likely permitted to be higher than the Loan Estimate without a tolerance cure?
- An automated underwriting system returns a recommendation on a conventional loan submitted to Fannie Mae. Which system produced the finding?
- A property appraisal comes in $15,000 below the agreed purchase price on a home the buyer is financing at 95% LTV. If nothing else changes, what is the most likely consequence?
- A borrower requests a rate lock on Tuesday and the loan officer confirms a 45-day lock in writing. What does this lock agreement primarily guarantee?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review