Now available to correspondent lenders of Indymac Bank is Form 5016, the Borrower's Income Affidavit. This Form will be needed for Indymac's Stated Income documentation loans delivered under its Preferred Delegated Underwriting program (PDU). The document provides the borrower with important information related to the use of stated income documentation and requires a certification regarding the amount of income.

Indymac highly recommends that correspondent lenders obtain the Affidavit or a similar form for Stated Income loans delivered under the PDU program. If an Affidavit has been obtained from the borrower(s), Form 5016 should be included with the evaluation of Stated Income. The Affidavit will be required for Stated Income loans with LTVs or CLTVs greater than 80% delivered for Prior Approval by Indymac. This requirement is effective for loans rated locked on or after May 18, 2007 as a pre-purchase condition.

To obtain Form 5016 in DocMagic's closing package, the DocMagic user must type any one of the following in the "Closing Conditions" section of the DocMagic worksheet for any of the current Indymac loan program options that allow Stated Income. Please refer to your Indymac Lending Guide.

Borrower's Income Affidavit
BORROWER'S INCOME AFFIDAVIT
Borrowers Income Affidavit
BORROWERS INCOME AFFIDAVIT
Form 5016
FORM 5016

If you have any questions about the contents of this article, please contact DocMagic's Customer Service Department, at (800) 649-1362.