Taking Time Off Of Work
I recently had a loan application where we had a problem with something called “gap in employment”. What happened was the client was relocating from the west coast to the east coast and they quit their job knowing they had another one secured, but they didn’t start that job for seven weeks. Now, I knew enough to think that that might be a problem. A gap in employment can be a concern.
I looked up the Fannie Mae ruling on it and Fannie Mae says it’s not a concern until 60 days have gone by, eight weeks. My client’s gap in employment was seven weeks. Knowing that I was fine, I did not address it. I submitted the loan and, of course, the underwriter called me. They had their own interpretation of the Fannie Mae rule. They thought it was an issue, 30 day gap in employment. We had a seven week gap in employment. This was three days before loan closing and we had to scramble and write explanation letters and make a big scene about a gap in employment. So that’s one thing to consider in today’s economy when people are either being laid off or quitting jobs for new careers or new jobs, be careful about your gap in employment.