> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
> Use this file to discover all available pages before exploring further.

# Letter of Explanation - Employment Gap

> Technical specification for the Employment Gap Letter of Explanation document

## 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](/entity-models/key-concepts/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

| Field Name       | Type   | Required | Data Source     | Notes                                          |
| ---------------- | ------ | -------- | --------------- | ---------------------------------------------- |
| Borrower name    | String | Yes      | Borrower entity | Full legal name, repeatable for N borrowers    |
| Loan number      | String | Yes      | Loan entity     | Alphanumeric identifier                        |
| Property address | String | Yes      | Loan entity     | Full street address of property being financed |
| City             | String | Yes      | Loan entity     | City of property address                       |
| State            | String | Yes      | Loan entity     | State of property address                      |
| ZIP code         | String | Yes      | Loan entity     | ZIP code of property address                   |

### Employment gap fields (repeatable up to N times)

| Field Name     | Type   | Required | Data Source | Notes                                                                |
| -------------- | ------ | -------- | ----------- | -------------------------------------------------------------------- |
| Gap start date | Date   | Yes      | User input  | Date employment gap began, format: MM/DD/YYYY                        |
| Gap end date   | Date   | Yes      | User input  | Date employment gap ended, format: MM/DD/YYYY, must be >= start date |
| Explanation    | String | Yes      | User input  | Detailed explanation for the employment gap, free text               |

### Signature fields

| Field Name         | Type      | Required | Data Source | Notes                                                        |
| ------------------ | --------- | -------- | ----------- | ------------------------------------------------------------ |
| Borrower signature | Signature | Yes      | E-signature | Digital signature with timestamp, repeatable for N borrowers |
| Signature date     | Date      | Yes      | E-signature | Auto-populated on signature, repeatable for N borrowers      |

**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

| Question                                                                | Response Type | Validation                                             |
| ----------------------------------------------------------------------- | ------------- | ------------------------------------------------------ |
| "Borrower #X: What is your full legal name?"                            | Text input    | Required, min 2 words, repeat for each borrower        |
| "What is the property address?"                                         | Text input    | Auto-populated from loan entity                        |
| "Gap #X: When did the employment gap begin?"                            | Date          | Required, format: MM/DD/YYYY                           |
| "Gap #X: When did the employment gap end?"                              | Date          | Required, format: MM/DD/YYYY, must be >= start date    |
| "Gap #X: Please provide a detailed explanation for this employment gap" | Text area     | Required, detailed explanation of why the gap occurred |
| "Please sign and date this document"                                    | E-signature   | Required, includes timestamp                           |

**Note:** Questions marked with "#X" should be repeated for each borrower (up to N borrowers) or each gap (up to N gaps) as applicable.

## Template

Pre-made templates for this document will be provided separately. When a task is created requesting this document, you can provide borrowers with the template to complete and upload.