Gateway First Bank, Correspondent Lending is aligning with the agencies in their COVID-19 guidelines for self-employed borrowers.

Effective immediately, both Fannie Mae and Freddie Mac are retiring the COVID-19 guidelines for YTD P&L and 3 months bank statements for all self-employed borrower if they have filed 2020/2021 tax returns.  For borrowers who have not filed either their 2020 or 2021 returns they still must use COVID-19 placed guidelines.

Temporary Policy Original Effective Date of Temporary Policy Current Status of Temporary Policy
Requirements for borrowers using self-employment income to qualify:

  • Adds additional documentation and income analysis for self-employed borrows.
  • A YTD P&L (audited or unaudited) with a minimum of 3 months reported.  If unaudited, also 3 months business depository account statements.

Also requires adjustment to business income calculation and clarifies SBA PPP are not considered business assets.

Loan Application starting on June 11, 2020

Updated to require 3 rather than 2 bank statements with an unaudited P&L starting with loan application on Dec. 14, 2020.

Retired for loans in process and new application as of Feb 2, 2022, with tax returns dated 2020 or 2021.


Please note – the Verification of Employment is still in effect.

Verification of self-employment

Effective:  These policies became effective for loans with application dates on or after April 14, 2020 and are effective until further notice.

When a borrower is using self-employment income to qualify, the lender must verify the existence of the borrower’s business within 120 calendar days prior to the note date.  Due to latency in system updates or recertifications using annual licenses, certifications, or government systems of record, lenders must take additional steps to confirm that the borrower’s business is open and operating.  The lender must confirm this within 20 business days of the note date (or after closing but prior to delivery).

Below are examples of methods the lender may use to confirm the borrower’s business is currently operating:

  • -evidence of current work (executed contracts or signed invoices that indicate the business is operation on the day the lender verifies self-employment);
  • -evidence of current business receipts within 20 days of the note date (payment for services performed);
  • -lender certification that business is open and operating (lender confirmed through a phone call or other means); or
  • -business website demonstrating activity supporting current business operations (timely appointments for estimates or service can be scheduled).

Please reference Fannie Mae COVID-10 Temporary Selling Policies Job Aid and Freddie Mac Bulletin dated February 2, 2022 for the full announcements.


Please direct any questions to your Regional Sales Manager