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41 February 2025 J O U R N A L February 2025 » ployees make a fixed monthly income, to more complex ones, such as when hourly employees make a variable monthly income. It could be more challenging to determine a monthly income level that a borrower can depend on in the future in these variable-income scenarios. Examining Variable Incomes Two forms of variable income are of particular interest: digital gig economy income, which is earned by performing tasks or services via a digital platform, like a ridesharing company; and variable income, which is earned by being em- ployed through hourly pay with variable hours, commissions, bonuses, and overtime pay. Fannie Mae polled about 200 senior mortgage executives through our Mort- gage Lender Sentiment Survey in early October 2024 to learn about lenders' perspectives and experiences evaluating variable and digital gig economy income for mortgage lending, given the rise of these income streams following the pandemic. Key Findings: • Most lenders (67%) believe that accepting digital gig economy and variable income will improve con- sumers' access to credit. • Nearly half of lenders say the num- ber of borrowers who use digital gig economy income and variable income, separately, to qualify for a mortgage has grown in recent years. • Most lenders expect this growth to continue over the coming years. • Lenders' perspectives on current underwriting guidelines from sec- ondary market investors are mixed. Many lenders, however, pointed out that these sources of income are challenging to use when approving bor- rowers' mortgage applications (83% for income from the digital gig economy and 71% for income from variable sources). This is mainly due to issues with the requirements for income calculation, documentation, stability, and history, as well as the lack of industry standards or investor guidelines. Nearly half of lenders (46%) say they would prefer more precise (or prescrip- tive) standards for digital gig economy revenue, while 29% feel the current guidelines are "about right" and 26% want more flexibility. About 44% of lenders thought the criteria were "about right" when it came to variable income, with 32% stating they were not specific enough and 23% stating they needed to be more flexible. According to these survey results, more borrowers are generating variable and gig economy income, which reflects lenders' perceptions of the labor market. Although these borrowers might benefit from the present industry recommen- dations, secondary market investors, in particular, need to adopt more prescrip- tive policies for evaluating revenue from the digital gig economy. Leveraging new technologies and data sources will be crucial in developing sustainable underwriting methods that strike a balance between responsible risk management and loan availability as these kinds of occupations continue to expand. More Americans could have access to house financing and home- ownership prospects if the potential of flexible and digital gig economy income is fully explored.