FHA Mortgagee Letter 2021-13 was published June 17, 2021, informing Mortgagees of the new student loan calculation requirements, effective with all case numbers assigned on or after August 16, 2021.  Gateway First Bank, Correspondent Lending will begin accepting loans using the policies announced in this Mortgagee Letter immediately.

Required Documentation

If the payment used for the monthly obligation is less than the monthly payment reported on the Borrower’s credit report, the Mortgagee must obtain written documentation of the actual monthly payment, the payment status, and evidence of the outstanding balance and terms from the creditor or student loan servicer. The Mortgagee may exclude the payment from the Borrower’s monthly debt calculation where written documentation from the student loan program, creditor, or student loan servicer indicates that the loan balance has been forgiven, canceled, discharged, or otherwise paid in full.

Calculation of Monthly Obligation

For outstanding Student Loans, regardless of payment status, the Mortgagee must use:  the payment amount reported on the credit report or the actual documented payment, when the payment amount is above zero; or  0.5 percent of the outstanding loan balance, when the monthly payment reported on the Borrower’s credit report is zero.


Please direct any questions to your Regional Sales Manager