PennyMac aligns with the guidance given in the Fannie Mae Lender Letters 2020-03 dated May 28, 2020 and November 13, 2020 and Freddie Mac Bulletins 2020-19 and 2020-44 for borrowers using self-employment income to qualify. In addition, PennyMac is aligning with the age of tax return requirements provided in Freddie Mac Bulletin 2021-2.
The below chart provides a detailed breakdown for each month in 2021 of the specific documentation requirements for profit & loss statements, business bank statements, and tax returns based on the application date and if 2020 tax returns have been provided or not.
| If 2020 Tax Returns have not been provided; not yet required or extension in file | |||
|---|---|---|---|
| Application Date | The profit and loss statement must report, at a minimum: | When unaudited P & L, business bank account statements required: | Tax Returns Required |
| January 2021 | January through December 2020 | October, November, December 2020 | 2019 and 2018 for two years 2019 for one year |
| February 2021 | November, December 2020 and January 2021 | November & December 2020 and January 2021 | |
| March 2021 | December 2020 and January & February 2021 | December 2020 and January & February 2021 | |
| April 2021 | January through March 2021 | January, February & March 2021 | 2019 and 2018 for two years1 2019 for one year1 |
| May 2021 | January through April 2021 | February, March & April 2021 | 2019 and 2018 plus extension for two years 2019 plus extension for one year |
| June 2021 | January through May 2021 | March, April & May 2021 | |
| July 2021 | January through June 2021 | April, May & June 2021 | |
| August 2021 | January through July 2021 | May, June & July 2021 | |
| September 2021 | January through August 2021 | June, July & August 2021 | 2019 and 2018 plus extension for two years2 2019 plus extension for one year2 |
| October 2021 | January through September 2021 | July, August & September 2021 | 2019 and 2020 for two years 2020 for one year |
| November 2021 | January through October 2021 | August, September & October 2021 | |
| December 2021 | January through November 2021 | September, October & November 2021 | |
| 12020 Tax Returns required for loan applications dated on or after 4/15/2021 or extension required. 2Extension accepted until applications dated 9/30/21. On or after 10/01/2021, 2020 tax returns are required | |||
| If 2020 Tax Returns have been provided with evidence of filing to IRS | |||
|---|---|---|---|
| Application Date | The Profit and loss statement must report, at a minimum: | When unaudited P & L, business bank account statements required: | Tax Returns Required |
| January 2021 | P&L is required, October to December | October, November & December 2020 | 2019 and 2020 for two years 2020 for one year |
| February 2021 | P&L is required, November to January | November and December 2020 & January 2021 | |
| March 2021 | January through February 2021 | December 2020 and January & February 2021 | |
| April 2021 | January through March 2021 | January, February & March 2021 | |
| May 2021 | January through April 2021 | February, March & April 2021 | |
| June 2021 | January through May 2021 | March, April & May 2021 | |
| July 2021 | January through June 2021 | April, May & June 2021 | |
| August 2021 | January through July 2021 | May, June & July 2021 | |
| September 2021 | January through August 2021 | June, July & August 2021 | |
| October 2021 | January through September 2021 | July, August & September 2021 | |
| November 2021 | January through October 2021 | August, September & October 2021 | |
| December 2021 | January through November 2021 | September, October & November 2021 | |
Note: The lender should not rely solely on the above chart and remains responsible for ensuring that all Agency guidelines are being met.
Please contact your Sales Representative with any questions.