Why this document matters
During the underwriting process, an explanation from the borrower regarding any employment gaps may be required. This form enables the borrower to provide a justification for such gaps. The purpose of acquiring this information is to provide context for potential issues in the application, thereby ensuring a stable and reliable income source. Employment gaps may affect income verification and DTI calculations. Without proper explanation, employment gaps may require additional income verification, impact loan qualification, or delay underwriting.When this document is requested
This document is requested when:- Employment gaps identified in application or verification
- Gaps in work history that don’t align with reported income
- Periods of unemployment that need justification
- Underwriting requires context for employment history
Required data fields
Borrower information fields
Employment gap fields (repeatable up to N times)
Signature fields
Note: Borrower name and signature fields can be repeated for each borrower on the loan (up to N borrowers). Employment gap fields can be repeated for each gap (up to N gaps).
Suggested questions for data collection
Note: Questions marked with “#X” should be repeated for each borrower (up to N borrowers) or each gap (up to N gaps) as applicable.