Fannie Mae, Freddie Mac to Offer Modern Mortgages for Gig Economy

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Mark Livingstone on Twitter: “At Cornerstone First Financial, we offer bank statement programs where we average together all the #mortgage applicant’s deposits over the last 12 or 24 (depending on credit score) months & use that as income in order to service the “gig” #economy #modernmortgages #housing”

Fannie Mae and Freddie Mac are trying to make mortgages accessible for people working in the gig economy, according to this article in the Washington Post.

Fannie Mae, Freddie Mac to Offer Modern Mortgages for Gig Economy
When you think gig economy worker, think your Uber or Lyft driver, a person doing odd jobs through Task Rabbit or the person you task with bringing you food late at night through your Favor app.

Up to 30% of the U.S. workforce may work in the gig economy in some form or fashion and that number will most likely climb to 43% by 2020 according to data from Intuit, owner of TurboTax.

This kind of here-and-there work is currently not a plus on a mortgage application — where applicants are typically expected to have two years of documented income and reasonable assurance that the income stream will continue uninterrupted.

A recent survey of 3,000 lending executives by Fannie showed that 95% of those execs say it is difficult under current lending guidelines to approve gig workers for home loans.

Read the full report from the Housing Wire.

 

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