If you have been following the blogs on UberWriter you know we are not fans of the 1084 form for many reasons. On our blog entitled “FNMA 1084 and FHLMC 91 Are Useless” we outlined all the holes in that form and why we have that opinion. For example how the 1084 form does not work for 99% of employed borrowers or calculate REO income correctly.
Even after we tried to explain our positon people kept asking us to “make a 1084”. After talking it over we have decided to attack the problem of the 1084 and make it “USEFULL” instead of “USELESS”. We made this decision for one main reason…
The mortgage industry can be a slave to old habits.
Here is how we made a form that is normally confusing, and transformed it into an easy to use, and easy to understand income tool.
First: Create a guided user interface for entering all income data
All of the borrower’s income is required to do a proper income analysis, but the 1084 form doesn’t handle certain income types like hourly and salary. Also, the 1084 form does not tell you where to find the correct items to add or remove when calculating income. For example, depreciation on all the different types of SE forms like the SCH C or 1120S. UberWriter works like personal tax software and builds income specific forms to guide you in entering data from the borrower’s tax return.
Second: Know when and when not to use the 1084 form
One of the biggest problems with calculating income is communicating that income to others. UberWriter solved this by creating two different supporting reports to compliment the 1084 and address some of its deficiencies. To support the 1084 form we generate income summaries for every income type as well as detailed worksheets showing all the calculations. UberWriter is programmed to know what incomes go on the 1084, no matter if you have one source of income or one hundred.
Third: Do the math, and populate the forms automatically
One challenge with calculating income is knowing where to put that income on the 1084. If you have a borrower with multiple income sources it could take you longer to explain the 1084 and do the math then underwrite an entire employed borrower’s loan. UberWriter knows exactly where to put the income at and does the math without error! The 1084, the income summaries, and the income worksheets are all generated automatically.
So do we like the 1084 form…. Well no…. but now we have made it work like it should. Check UberWriter out, it’s totally 100% free sign up today and you will see for yourself… www.blueprintio.wpengine.com
3 Responses
Michael: I agree with your analysis of the 1084. It is a diabolical form and leaves many an underwriter guessing or worse, denying an approvable application. We initiated Cipher1 to simplify the error prone an laborious task of completing the 1084 correctly. Cipher1 has been approved by Freddie Mac and vetted by Fannie Mae as a viable tool to analyze the self-employed and multi income borrower. It is simple to use, fast and accurate.
In addition. have your seen the new edition of the1084 -12/2014. Even more difficult…
Great article, I’m an underwriter, and been in the mortgage industry since 1997. I never use those forms. I use a well developed worksheet that breaks out the SAM method into 7 different worksheets. Great for borrowers with numerous types of income.
As an aside, my brother was 82nd Airborne, and jumped into Panama in 1989. His rank was Spec at the time of honorable discharge. Our Dad’s side of the family is from the East side of Detroit (suburbs – GP, SCS, Roseville, etc). Small world.
Thanks Meaghan..
I am with you on the confusion part, the same way you built well developed worksheets we built Uberwriter to “stop the craziness” of these forms. I just sat with a newer underwriter this morning trying to explain how to use the 1084… never easy to explain or use! Thanks for the Army story two..yes small world!