Urban Institute: QM Rule May Penalize Self-Employed

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Posted To: MND NewsWire

Households headed by self-employed persons make up about one-tenth of all households and have a median income higher than those headed by salaried persons. But, while both self-employed and salaried households were hit hard by the Great Recession, the self-employed were hit harder and have not yet fully recovered from those effects. Those households also find it more difficult to obtain a mortgage than salaried individuals because they are harder to underwrite. They experience greater income volatility and lack pay stubs or W-2s that make it easy for lenders to verify and document income. Three Urban Institute researchers, Karan Kaul, Laurie Goodman, and Jun Zhu used American Community Survey (ACS) data from 2001 to 2016 to determine the size of the self-employed population, their incomes,…(read more)

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