FHLMC Single-Family Seller/Servicer Guide Chapter 5301 — General Requirements for All Stable Monthly Income

fhlmc-5301

FHLMC Single-Family Guide §5301.1 establishes general stable- monthly-income requirements: stable income definition (verified gross monthly income reasonably expected to continue ≥3 years); Seller must determine source and amount are stable with consistent level of earnings; cryptocurrency-income exclusion; documentation retention in Mortgage file; 2-year history baseline; no-qualify-on- income-contradicted-by-info rule. Fills FHLMC Selling Guide Chapter 5300 series gap.

Get this register: .xlsx .csv More bundles →

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-
    monthly-income requirements: stable income definition (verified
    gross monthly income reasonably expected to continue ≥3 years);
    Seller must determine source and amount are stable with consistent
    level of earnings; cryptocurrency-income exclusion; documentation
    retention in Mortgage file; 2-year history baseline; no-qualify-on-
    income-contradicted-by-info rule. Fills FHLMC Selling Guide
    Chapter 5300 series gap.
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?
    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
    feeds: []
    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-
        continuance operative phrase. Quote starts mid-sentence to avoid
        U+2019 curly apostrophe in "Borrower's verified gross monthly
        income"; the verified-gross-income and Borrower context paraphrased
        in description.
    promoted_at: '2026-05-25T20:31:18+00:00'
    promoted_from: fhlmc-5301-roundd-v1.yaml
  - 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]
      (Seller) shall determine that BOTH the source AND the amount of
      the income are stable, with a consistent level of earnings.
      Stability must be evaluated on both axes — source stability
      alone is insufficient if the amount fluctuates inconsistently.
    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)?
    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
    feeds: []
    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-
        and-amount-stable operative requirement.
    promoted_at: '2026-05-25T20:31:18+00:00'
    promoted_from: fhlmc-5301-roundd-v1.yaml
  - 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?
    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
    feeds: []
    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)
        cryptocurrency-not-eligible operative restriction.
    promoted_at: '2026-05-25T20:31:19+00:00'
    promoted_from: fhlmc-5301-roundd-v1.yaml
  - 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?
    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
    feeds: []
    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-
        history operative requirement.
    promoted_at: '2026-05-25T20:31:19+00:00'
    promoted_from: fhlmc-5301-roundd-v1.yaml
  - 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?
    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
    feeds: []
    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)
        no-qualify-contradicted-continuance operative restriction.
    promoted_at: '2026-05-25T20:31:20+00:00'
    promoted_from: fhlmc-5301-roundd-v1.yaml
_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

Verbatim regulatory text (5)

Verbatim provisions from FHLMC Single-Family Seller/Servicer Guide Chapter 5301 — General Requirements for All Stable Monthly Income — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FHLMC Single-Family Guide §5301.1(b) — Stable monthly income from verifiable sources expected to continue 3 years

from all acceptable and verifiable sources that can reasonably be expected to continue for at least the next three years.

Source: FHLMC Single-Family Guide §5301.1(b) — General requirements for all stable monthly income · source URL · snapshot fbba421721d90cb1

FHLMC Single-Family Guide §5301.1(b) — Seller must determine source and amount of income are stable

the Seller must determine that both the source and the amount of the income are stable, with a consistent level of earnings.

Source: FHLMC Single-Family Guide §5301.1(b) — General requirements for all stable monthly income · source URL · snapshot fbba421721d90cb1

FHLMC Single-Family Guide §5301.1(b) — Cryptocurrency income not eligible for qualification

Income that is paid to the Borrower in cryptocurrency may not be used for qualification.

Source: FHLMC Single-Family Guide §5301.1(b) — Cryptocurrency · source URL · snapshot fbba421721d90cb1

FHLMC Single-Family Guide §5301.1(c) — 2-year history baseline for stable income

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.

Source: FHLMC Single-Family Guide §5301.1(c) — Income stability and history requirements · source URL · snapshot fbba421721d90cb1

FHLMC Single-Family Guide §5301.1(d) — Do not qualify with income contradicted by continuance info

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.

Source: FHLMC Single-Family Guide §5301.1(d) — Income continuance requirements · source URL · snapshot fbba421721d90cb1