Underwriting for Statutory Employees | Blueprint
After years of working in underwriting when you look through enough loans it becomes easier over time to recognize a borrower’s income type. However there are those income types that are rare and when you run across them can take you out of your underwriting rhythm. One of those income types is the statutory employee. They stand […]
FNMA 1084 and FHLMC Form 91 are useless
Of the questions I have received is if I can make a training video or instructions for the 1084 & 91 forms. Generally speaking my first response would be no! Why would I say no? To be honest I am not a fan of the 1084/91 forms, here is my top 5 for not liking […]
Can Business Funds Be Gifted for a Down Payment? | Blueprint
Sometimes when you are underwriting the same question seems to come in “three’s”. Maybe it is timing, maybe happenstance, or maybe different people are asking the same question about the same loan. A few weeks back I was helping out a loan officer to get a conventional loan ready to close, but the borrower ended up […]
Who’s the boss in underwriting?
Most Popular Income Type in the US In the world of underwriting the self-employed borrower gets a ton of attention. If you ask for underwriting training, in most cases the majority of the time will be spent going over tax returns, 1088 forms, distributions, and cash flow analysis. The complexity of the income calculations can […]
FNMA large deposit rule on refinancing
A few days ago I received a question about how to handle large deposits when the transaction is a refinance on a FNMA conventional loan. The question specifically asked if it was okay just to “back out” the large deposit from the bank account and not ask about the source. I think the answer surprised […]
3 Reasons to Show Your Math | Blueprint
When I was in school if you asked me what my favorite subject was I would have told you math. Not really because it was my favorite, but it was my “least hated” subject anyway. The reason it made my favorite list is math has a nice way of being absolute in most cases. Put […]
Four options for determining student loan payments
As a parent with two kids attending college the discussion of getting through college with minimal student debt (or none at all) has been a topic for the last 5-6 years around my household. I have tried to educate my kids on the pro’s and cons’ of student loans and making student loan payments. I […]
FNMA SEL 2016-05 New Guidelines for 1065/1120S
One of the most common topics I run across for self-employed borrowers is the discussion on ”The dreaded Distribution Versus Ordinary Income”. Even though the guidelines clearly outlined these requirements for years, they never seemed to be enforced. The guidelines were largely ignored by lenders selling to both agencies. Since FNMA has brought the distribution […]
How to handle any rental income – part 3
Last but not least (and probably the most used form of rental calculations) part 3 of 3 of “Rental income from non-subject properties”. Be sure to read parts 1 and 2 to get up to speed on this entire topic. As a quick recap this three-part blog broken down into these topics in regards to […]
How to handle any rental income – part 2
Welcome to part 2 of 3 of “How to handle any rental income” series. In case you missed the first installment you can catch up by clicking this link “How to Handle Any Rental Income Part 1” As a quick recap this three-part blog broken down into these topics in regards to rental income. Rental […]