Where is that box on the tax return? – Part 1 of 4
Self employed income analysis… probably one of the harder things to get your mind around if you work on the mortgage industry. However once you get the hang of “the where, what, and why” on the common business return, it gets much easier. FNMA All Regs and FHLMC All Regs outline their expectations for calculating income […]
Warning on borrowers out of work for an extended period
It seems over the last few years FNMA and FHLMC are moving just a little further apart in how they look at lending. In my opinion FNMA seems to hold a bit of a lower barrier of entry than FHLMC in general. A few examples come to mind, first off FNMA will allow rental income for […]
Interview with Adam Lesner and Michael Whitbeck
Michael Whitbeck gets interviewed by Adam Lesner about Uberwriter. Adam is a loan officer with Michigan First Mortgage and is an a passionate advocate for the borrower and devotes his website www.balancedprocess.com to the education and support of those seeking home financing. Adam recently discovered UberWriter and interviewed Michael for his website. See what others have […]
Fannie Mae 1088, over two decades old, and still misunderstood
Updated 07/15/2018 to correct All Regs References For Freddie Mac One thing about the mortgage business you can count on is change, but not everything changes year by year! For example, the core principals of underwriting have always been the “4 C’s of underwriting” which are credit, capacity, capital, and collateral. Some could argue that […]
Self Employed Borrowers and Allowable Income
Regulation Change Update: The following blog was posted in January of 2013 and the regulations have changed since we posted. Question: When reviewing business tax returns such as 1165, 1120S, and 1120, should we treat any additional income derived from the business returns all the same regardless of FNMA or FHLMC? Answer: FNMA and FHLMC […]
How and when to deduct 2106 expenses
Updated 05/20/2019 Due to the change in the tax code for 2018 both Fannie Mae and Freddie Mac have eliminated the need to consider Unreimbursed Business Expenses when evaluating borrower income. See FNMA SEL 2018-09 and FHLMC Guidelines for additional information. As of 05/20/2019, the government guidelines have not been updated, but since the tax […]