Senate Pushing Bill To Expand Mortgage Access for the Self-Employed
A few months ago we reported on self-employed borrowers and the process of getting a mortgage as a self-employed person, because of its difficulty. Now, a bipartisan push is underway in the Senate that could change the way self-employed borrowers are qualifying and receiving their mortgages.
The Self-Employed Mortgage Access Act will help creditworthy borrowers with non-traditional forms of income qualify for a mortgage by allowing a verification of employment from non-W-2 forms of employment. This act also helps borrowers to be protected from predatory lending.
The goal of this act, is to expand and allow self-employed borrowers additional types of documentation to show they are creditworthy. The loosening of requirements allows borrowers additional ways to pass qualifications for borrowers without removing protection.
The Senate comments that “we shouldn’t be unfairly punishing entrepreneurs, farmers or other small-business owners because they don’t earn income on a W-2.” The Mortgage Bankers Association, Consumer Federation of America, and others are supporting this act and pushing to get it passed.