Paystub Calcs
What pay frequency is 13 days or 80 hours per pay check?
Bi-Weekly
What is the decline reason for income not meeting the minimum income requirement? (can be Pin or County)
Income does not support the loan request/Insufficient income for amount of credit requested
Which document on the wage and income transcript shows mortgage interest?
1098 Mortgage Interest Statement
Name 2 things you would ask for to verify current proof of business income.
- 3 months of bank statements
- P&L
- Employment Contracts
- Pay statements showing YTD Earnings
- 1099 invoices
If the paystub EIN matches the k1 EIN, do we require a paystub dated within 30 days?
No
At the end of what quarter do we stop using the year end stub to decision the file?
end of Q1
Which decline reason would be used if an applicant threatens to declare bankruptcy if the loan is not approved
Negative payment record as disclosed by borrower
What schedule on the 1040 shows the mortgage interest amount paid on the rental property?
Schedule E
Are businesses required to claim losses on the sch. E?
No
County: Are we able to fund to a borrower that has a valid Green Card expiring in 2030?
Yes
What section does BONUS income belong in?
Non-Recurring/Other
What is the decline reason for a borrower that is paid in Euros?
Funds must be used in the United States
What schedule on the 1040 shows the mortgage interest amount paid on the primary residence?
Schedule A
When do we include addbacks for rental income?
When rental income is more than 50% of total income
AKA when rental income is higher than the sum of all other sources of income
Pinnacle: Can a borrower UOF be for sending money to family/friends overseas for financial support?
Yes
What segment does a Risk Grade C Registered Nurse belong in?
Everyone Else
If we are missing a mortgage payment in the PFS and the borrower refuses to provide the information. Which decline reason do we use? (Pin or County)
Amount of debt relative to income too high/Excessive obligations in relation to income
If the mortgage interest line on the Sch. E shows $0, what can we assume? (given there is no additional indications on the file)
There is not an active mortgage on the rental property
Which type of business does not receives k1s?
1120
If the K1 and Sch. C are for the same business, which income would we include in the cashflow?
NOTE: K1 amount matches the gross line of the Sch. C
Sch. C only
On Skilled RG D files, non-regular pay must be less than this percentage to be included in the pay calc
50%
If underwriting finds proof that the borrower has ownership in a business and the returns are required for the cashflow, but the borrower refuses to provide them. Which decline reason would we use?
NOTE: The front end did not have any proof that the borrower had ownership
Insufficient income for amount of credit requested/Income Does Not Support the Loan Request
If the interest on the sch. E matches the 1098 exactly and there is a 1099S for the same address, what can we assume?
The rental property was sold.
Do we include Prior Year Allowances or Section 179 expenses in the cashflow?
What would the cashflow look like for a Fiscal Year k1 file?
The cashflow should mimic the 1040s
2024 W2 & 2023 K1
2023 W2 & 2022 K1
2022 W2 & 2021 K1