I’m out of the loop here and too lazy to check, but let’s say those people were to apply for a mortgage, would the bank only look at the “fixed” part of their income when considering one’s application? Or it will also look at the “variable” part? (i.e. the part of the comp that will vest at some point in the future). If the answer to this last question is “yes”, how does the bank “compute” that future/expected income?

> would the bank only look at the “fixed” part of their income when considering one’s application? Or it will also look at the “variable” part?

Should be both. To the latter, it depends how it’s structured. But typically by looking at a few years’ compensation.

Normally, they will look at two years of stable(typically W2) income (Salary + RSUs) from one company before they make decisions. However, in bay area, some mortgage lenders have started excusing people who jump companies, because, well jumping companies in bay area is common. They now have to tweak their models.

Source: Recently went through the mortgage