Are FHA-approved Mortgagees required to report all income of its employees on a W-2 to the Internal Revenue Service (IRS)?

The Mortgagee must report all employee compensation in accordance with Internal Revenue Service (IRS) requirements.
 
The Mortgagee must not compensate employees who perform underwriting or Quality Control (QC) activities on a commission basis.

For additional information see Handbook 4000.1 Section I.A.3.c.iv.(B)(3)(b)(ii) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

 


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-05118