Please use the following calculator and quick reference guide to assist you in calculating qualifying income from tax returns. It provides suggested guidance only and does not replace Fannie Mae®, Freddie Mac, Lender or Investor instructions or applicable guidelines.

I Form 1040 — Page 1 2013 2012 NOTES1 Self–Employed Wages or Similar Income, W–2 (Line 5) *If untaxed income can be

grossed up, see calculator-on last page of this guide.2 Tax–Exempt Interest (Line 8b) +

3 Alimony Received (Line 11) + 4 IRA Pension/Annuity Distributions (Lines 15a and/or 16a*) +5 Recurring Unemployment Compensation (Line 19) +6 Social Security Benefits (Line 20a*) + 7 Other Income (Line 21) +/–8 Other: +/–

II Form 2106 — Employee Business Expenses 2013 2012 NOTES9 Total Expenses (Lines 8a + 8b) –10 Depreciation (Line 28, if complete, OR) +11 Business Miles (Line 13)

11a x Depreciation Rate (2013 & 2012 23¢)

11b = Total Mileage Depreciation +Form 2106 Subtotal Average

III Schedule B - Interest and Dividends 2013 2012 NOTES12 Recurring Interest Income (Line 1) +13 Recurring Dividend Income (Line 5) +

IV Schedule C - Sole Proprietorship 2013 2012 NOTES14 Net Profit or Loss (Line 31) +/–15 Nonrecurring Other (Income) Loss or Expenses (Line 6) +/–16 Depletion (Line 12) + 17 Depreciation (Line 13) + 18 Meal and Entertainment Exclusion (Line 24b) – 19 Business Use of Home (Line 30, also see Form 8829 or the

Simplified Method Worksheet)+

20 Business Miles, Page 2, Part IV (Line 44a)

20a x Depreciation Rate (2013 & 2012 23¢)

20b = Total Mileage Depreciation + 21 Amortization/Casualty Loss only if noted (Page 2, Part V ONLY

add Am/CL)+

Schedule C Subtotal Average

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Calculator and Quick Reference Guide: Schedule Analysis Method (SAM)

Borrower(s) Name(s) Loan Number

Property Address # Months ConsideredAverages in the Notes Section are based on the number in this field.

Click the gray buttons to calculate averages in the Notes column.

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V Schedule D - Capital Gains or Losses 2013 2012 NOTES22 Recurring Capital Gains or Loss, Page 2, (Line 16, Details on

Form 8494)*+/– *Verify no recurring losses that

need to be considered.

VI Form 6252 - Installment Sale Income 2013 2012 NOTES23 Principal Payments (Line 21, Be sure income not also included

with Sch D or 4797, Obtain underlying agreement. Check guidelines)

+/–

VII Schedule E - Supplemental Income and Loss* 2013 2012 NOTES24 Royalties Received (Lines 3 and 4) + *Many lenders/investors

require rental income be calculated separately and not included with the SAM Form.

25 Intentionally left blank

26 Amortization/Casualty Loss/Depletion only if noted (Line 19) +27 Depreciation (Line 18) +28 Total Expenses (Line 20) –29 Insurance, Mortgage Interest, Taxes and HOA Dues Included

in PITI+

(Lines 9, 12 and 16 if using property’s full PITI payment in qualifying ratios)

Rental Income/Loss Subtotal Average

VIII Schedule F - Farm Income 2013 2012 NOTES30 Net Profit or Loss (Line 34) +/–31 Non–Tax Portion Ongoing Co-op & CCC Pmts (Lines 3a–3b,

4a–4b, 6a–6b)+

32 Nonrecurring Other (Income) or Loss (Lines 5c and 8) +/–

33 Depreciation (Line 14) + 34 Amortization/Casualty Loss only if noted (Line 32) + 35 Business Use of Home only if noted (Line 32) +

Farm Income Subtotal Average

IX Partnership Schedule K-1 (Form 1065 K–1) 2013 2012 NOTES36 Ordinary Income or Loss (Lesser of Line 1 or Line 19a) +/– *Obtain Form 8825, Schedule

of Rental Properties.37 Net Income or Loss (Lines 2 and 3*) +/– 38 Guaranteed Payments to Partner (Line 4) +

Partnership K-1 Subtotal Average

X S-Corp Schedule K-1 (Form 1120S K–1) 2013 2012 NOTES39 Ordinary Income or Loss (Lesser of Line 1 or Line 16d) +/– *Obtain Form 8825, Schedule

of Rental Properties.40 Net Income or Loss (Lines 2 and 3*) +/–

S–Corp Subtotal Average

Subtotal of Income from Personal Returns

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Partnership and S Corporation K-1Please check your investor guidelines.Ordinary income reported on Schedule K-1 may be included in the borrower’s cash flow only if:

• The borrower has a documented, consistent, and stable history of withdrawals or cash distributions of income from the business,• The business has positive sales and earnings trends,• The business has adequate liquidity to support the withdrawal of earnings, and• The borrower’s ownership and access to the income is documented by a partnership agreement or corporate resolution.

Click the gray buttons to calculate averages in the Notes column.

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XI Partnership (Form 1065) 2013 2012 NOTES1 Passthrough (Income) Loss from Other Partnerships (Line 4) +/– *Only add back eligible

“Other” expenses.

** Follow specific investor guidelines; Adjustments may not be required if there is evidence these roll over regularly, these are verified to be a line of credit or if the business has sufficient assets to cover the liability.

2 Nonrecurring Other (Income) Loss (Lines 5, 6, 7*) +/– 3 Depreciation (Line 16c) + 4 Depletion (Line 17) + 5 Amortization/Casualty Loss/Depletion only if noted (Line 20)

See Attached Statement+

6 Mortgages, Note or Bonds Payable in Less Than 1 Year (Schedule L, Line 16d)

–

7 Meal and Entertainment Exclusion (Schedule M–1, Line 4b**) –8 Subtotal =

Borrower's Percent Ownership (Schedule 1065 K–1) x 9 Borrower's Pro–Rata Share of Profit/Loss =

XII S Corporation (Form 1120S) 2013 2012 NOTES10 Nonrecurring Other (Income) Loss (Lines 4, 5*) +/– *Only add back eligible

“Other” expenses.

** Follow specific investor guidelines; Adjustments may not be required if there is evidence these roll over regularly, these are verified to be a line of credit or if the business has sufficient assets to cover the liability.

11 Depreciation (Line 14) + 12 Depletion (Line 15) + 13 Amortization/Casualty Loss/Depletion only if noted (Line 19)

See Attached Statement+

14 Mortgages, Note or Bonds Payable in Less Than 1 Year

(Schedule L, Line 17d**)–

15 Meal and Entertainment Exclusion (Schedule M–1, Line 3b) – 16 Subtotal =

Borrower's Percent Ownership (Schedule 1120S K–1) x 17 Borrower's Pro–Rata Share of Profit/Loss =

XIII Corporation (Form 1120) 2013 2012 NOTES18 Taxable Income (Line 30) + *Only add back eligible

“Other” expenses.

** Follow specific investor guidelines; Adjustments may not be required if there is evidence these roll over regularly, these are verified to be a line of credit or if the business has sufficient assets to cover the liability.

*** Check guidelines if ownership < 100% and subtotal is positive.

19 Tax Paid (Line 31) –

20 Nonrecurring Gain/Loss (Lines 8, 9*) +/–

21 Nonrecurring Other Income/Loss (Line 10*) +/–

22 Depreciation (Line 20) +

23 Depletion (Line 21) +

24 Domestic Production Activities Deduction (Line 25) +25 Amortization/Casualty Loss/Depletion only if noted (Line 26)

See Attached Statement+

26 Net Operating Loss and Special Deductions (Lines 29a, 29b) +

27 Mortgages, Notes or Bonds Payable in Less Than 1 Year

(Schedule L, Line 17d**)–

28 Meal and Entertainment Exclusion (Schedule M–1, Line 5c) –29 Subtotal =

Borrower's Percent Ownership (Form 1125–E***) x

30 Borrower's Pro–Rata Share of Profit/Loss =31 Dividends Paid to Borrower (See Form 1040, Schedule B) –32 Borrower's Pro–Rata Share of Profit/Loss =

Partnership, S Corporation and Corporation TotalsPlease check your investor guidelines.The following sources of income may be considered for qualification provided:

• The borrower can document ownership and access to the income;• The business has adequate liquidity to support withdrawal of earnings; and• The business has positive sales and earnings trends.

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Totals 2013 2012 NOTESTotal From Personal Returns (Form 1040)

Total from Business Returns (Forms 1065, 1120S and 1120) +

Gross Annual Total = Number of Months Considered +/–

Annual Monthly Income Per Year = Average Monthly Income

Calculator for Grossing Up Untaxed Pension, Annuity or Social Security Income

2013 2012 NOTES

Gross Amount of Income Received

Taxable Portion of Income –

Untaxed Portion of Income = Allowable Gross Up Percentage (Example: Enter 1.25 for 25%) x

Grossed Up Untaxable Amount = Sum of Taxable Portion and Grossed Up Untaxed Portion

Grossing Up Calculator Check all applicable guidelines to determine if untaxed income can be grossed up and, if so, by what percent. Use this calculator to determine the total qualifying income when grossing up income.

The Calculator and Reference Guide can be found online at http://mortgageinsurance.genworth.com/Training

Click the gray buttons to calculate averages.

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Year to Date Profit and Loss StatementWhen using or evaluating profit and loss statements, always consult all applicable guidelines, including lender, investor, GSE and, where applicable,

federally mandated ability to repay requirements. Generally, the lender may use a profit and loss statement—audited or unaudited—for a

self–employed borrower’s business only to support its determination of the stability or continuance of the borrower’s income. A typical profit

and loss statement has a format similar to IRS Form 1040, Schedule C. Allowable addbacks include depreciation, depletion and other non–cash

expenses as identified above.

Year–to–Date Profit and Loss Statement

Salary/Draw to Individual _______________________

Net Profit _______________________ _______________________ % Ownership = _______________________

Total Allowable Addbacks _______________________ _______________________ % Ownership = _______________________

Year–to–Date Total _______________________

X

X

9113811.0814 ©2014 Genworth Financial, Inc. All rights reserved.Rev 1014 v2