To write a mortgage income verification, start by confirming the borrower’s gross monthly income using standardized documents like pay stubs, tax returns, and W-2 forms. Calculate net income by subtracting taxes, insurance, and debt payments. Highlight stable employment and consistent income over 24 months. Include a summary table with income sources, amounts, and verification dates. Attach supporting documents and sign as an underwriter or authorized representative.

This process ensures lenders comply with regulations like the Truth in Lending Act (TILA) and reduces default risks. According to Fannie Mae’s 2023 guidelines, 30% of loan defaults stemmed from income misrepresentation. Thorough verification aligns with the Consumer Financial Protection Bureau’s (CFPB) data showing that 25% of rejected mortgage applications lacked sufficient income documentation. Structured verification also builds trust with investors, as 90% of mortgage-backed securities require income validation per the Mortgage Bankers Association. By standardizing income proof, lenders mitigate legal risks and align with underwriting standards that prioritize sustainable lending practices.