A few months ago we reported on self-employed borrowers and the process for getting a mortgage as a self-employed borrower, as it is a little more difficult to achieve.
Now, a new bipartisan push is underway in the Senate that could change the way self-employed borrowers are receiving their mortgages.
The Self-Employed Mortgage Access Act will help credit-worthy borrowers with non-traditional forms of income qualify for a mortgage by allowing a verification of employment from additional, non W-2 forms of employment as well as helping these same borrowers be protected from predatory lending.
The goal of this act, now coming into play, will expand to allow self-employed borrowers additional types of documentation to show they are creditworthy. The loosening of requirements will allow borrowers to have a less burdensome way to pass requirements for consumers and borrowers without removing protection.
The Senate notes that “we shouldn’t be unfairly punishing entrepreneurs, farmers or other small business owners because they don’t earn income on W-2. The Mortgage Bankers Association, Consumer Federation of America, and the Milken Insitute are in support of this act and are pushing to get it passed.