SAFE MLO Qualification: Processing & Underwriting question: salaried borrower finished college

SAFE MLOQualification: Processing & Underwriting

A salaried borrower finished college 14 months ago and has worked at her first full-time job ever since. How does Fannie Mae treat her base salary?

A It may be used only if she adds a co-borrower
B It cannot be used until she has two years of employment
C It may be used; base pay needs no minimum history
D It may be used only with 12 months of reserves

Show the answer and explanation

Answer: C. It may be used; base pay needs no minimum history

Fannie Mae's base income topic states that a minimum history is not required for fixed base pay; the lender documents it with a paystub and W-2 (or Form 1005) plus a verbal VOE, and need not verify continuance without a reason to doubt it (Fannie Mae Selling Guide B3-3.3-01, dated Mar 4, 2026). Variable pay such as overtime is different: it needs at least 12 months of history (B3-3.3-02). Source: Fannie Mae Selling Guide B3-3.3-01 (Mar 4, 2026) and B3-3.3-02 (as at 11 Oct 2026).

Common mistake

Applying an old two-years-on-the-job rule to base salary.

Practice more SAFE MLO Qualification: Processing & Underwriting questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practicing →

Study note: Qualification: Processing & Underwriting SAFE MLOpractice questions & mock exams

Related SAFE MLO practice questions

A borrower's overtime was $8,000 last year and $5,000 the year before; this year it is on pace for $2,500. How should an underwriter view this overtime?A self-employed borrower's net business income was $84,000 in 2024 and $96,000 in 2025, with a stable business. Using a two-year average, what is the monthly qualifying income?A borrower takes a 12-month loan to finance construction of a house; a separate permanent loan from another lender will pay it off. Under Regulation X, how is the construction loan treated?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practicing →

Original study material mapped to the public NMLS Content Outline; not a real test question.Not affiliated with or endorsed by NMLS, CSBS or SRR. Verify figures and rules against current guidance before relying on them.