Bulletin 2025-007 Smart Series Underwriting Guide Updates

Current Policy

New Policy

SmartSelf

• All other self-employed borrowers:
  • Verify from accountant/CPA or licensed tax preparer (with PTIN). Validation of the legitimacy of the CPA is required. One of the following tools may be used:
    • CPAverify
    • CPAverify Participating States
    • American Institute of CPAs
  • Business Formation Documents (Articles of Incorporation, Bylaws, Charter, Articles of Association)
  • Any documents received must document that they have been filed properly with the state
• Operating Agreement/Partnership Agreement
• IRS letter documenting the borrower’s percentage of ownership in the business

• All other self-employed borrowers:
  • Verify borrower(s) percentage and length of ownership with one of the following:
    • Letter from CPA or licensed tax preparer (with PTIN), or
    • Business Formation Documents (Articles of Incorporation, Bylaws, Charter, Articles of Association) filed with the applicable state and one of the following to verify the borrower’s ownership percentage:
      • Operating Agreement/Partnership Agreement
      • Must reflect all member-ownership interest in the business
      • IRS Employer Identification Number (EIN) letter documenting the borrower’s percentage of ownership in the Business; or
      • Stock Certificate or other acceptable corporate documentation verifying the number of shared owned by the borrower and documentation confirming the total number of shared issued and outstanding (Corporation).

Note: If a letter from a CPA or licensed tax preparer (with PTIN) is provided, validation of their license is required.

SmartVest

• Prepayment penalties not permitted in the following states
  • Minnesota
  • New Jersey
  • New Mexico
• Prepayment Penalty Rider is required

• Prepayment penalties not permitted in the following states
  • AK, DC, ID, KY, ME, MN, MS, NJ, NH, OH
• Prepayment Penalty in South Carolina is not permitted on loan amount < $765,000
• Prepayment Penalty Rider is required