MTG
MTG STATEMENT SHOWS A PAST DUE BALANCE, ARE WE ABLE TO TAKE PROOF OF PAYMENT OVER PROOF OF SEASONED FUNDS?
NO, WE WOULD NEED PROOF OF SEASONED FUNDS AND BO IS REQUIRED TO SHOW PROOF THE ACCOUNT IS CURRENT BY CLOSING, BUT NOT TO MOVE FORWARD.
What schedule would we need if on Schedule 1, the Business Income or Loss field (Line 3 for 2023) contains an amount other than 0.
1040 Schedule C is required
Borrower states the business is no longer active , what do you do?
Obtain document to support business has been dissolved or sold or get the Final K-1.
IF THERE ARE TWO OR MORE PEOPLE ON A BANK ACCOUNT, WHAT DO WE REQUIRE IF ITS A NBS/TP? AND IF WE CAN'T GET THE DOCUMENT, HOW DO WE HANDLE THE ASSETS?
WE REQUIRE A LETTER FROM THE NBS/TP ON THE ACCOUNT SAYING BWR HAS 100% ACCESS TO THE FUNDS.
IF WE CAN'T GET THE LETTER, WE WOULD HAVE TO DIVIDE THE ACCOUNT BALANCE BY THE NUMBER OF PEOPLE ON THE ACCOUNT LISTED AS OWNERS.
What is needed for Pension Income and what is the main thing we are looking for?
Note: If the income is from a state or government pension then only the current 1099 is needed.
* Looking to see how long the pension is going to last
BO uploads a MTG statement with no escrow. What document do we need before moving forward?
Property taxes
What do we need when an undisclosed business with a loss is found on a 1040?
LOE if business is still active as well as the YTD profit and loss statement.
What documentation is needed to validate percent of ownership for a Corp?
(schedule G)
What is the procedure if BO uploads a bank statement with insufficient assets?
Follow up with BO to see if they have any other personal accounts to use for assets. If they do not, send back to PB for decline.
What is needed for Annuity/401K/IRA Income? What are the requirements for the income statement?
Most recent 2 years 1040s with all schedules
Most recent financial income statement showing borrower name, set distribution and account balance to verify 3-year continuance.
Where do you go to check if a property has more than 1 mortgage?
Liabilities > Mtg Liabilities
or
REO > View Linked Mtg
What month is the deadline for tax returns when we can no longer accept the extension form?
October
What tax form and what schedules do we need for a partnership
1065 is listed in top left corner.
All schedules
B
K
L
M1
M2
What type of accounts can we use for liquid assets?
• checking account
• savings account - Excluding FSA, HAS, and other pre-tax accounts
• money market fund
• certificates of deposit (CD)
BO can't provide current year pension award letter, what do we do?
If the letter is not of the current year, the borrower is required to provide proof of monthly income over the last 12 months through bank statements in addition to the Pension Award Letter.
Proof of three-year continuance
Are we allowed to be behind an interest only loan?
No. Specifically, a DHL 2nd lien loan is not allowed behind the following: • Interest only loans • Negative amortization loans • Privately held mortgages • Balloon loans with less than 36 months remaining term • Shared Modification Agreement Loans (SAM) • Reverse Mortgages • Small Business Loans
When do we request tax transcripts over personal tax returns?
Tax transcripts are required in the following situations:
* Applicant(s) cannot provide tax returns or
• Applicant(s) provides handwritten tax returns or
• We need to verify information on tax returns provided by Applicant(s)
*If we need to order them* A signed 4506-C form is required in order for us to order the Applicant's tax transcripts.
What tax form and what schedules do we need for an S Corp?
1120S is listed in top left corner
All the following schedules:
Schedule B
Schedule K
Schedule L, M-1, M-2
Does self-employment income require liquid assets with less than 25% ownership?
No, Self-employment income with less than 25% ownership does not require liquid asset reserves.
What does a borrower provide if they have Military Income?
What is needed for the following issues found on a mortgage statement?
Deferment
Forbearance
Unpaid Second Principal
Late fees or past due amount over $50
No Escrow listed
Overage or shortage showing
If there is a Deferment Collect Loan Modification Documents
If there is a Forbearance Collect Loan Modification Documents and Seasoned Funds
If there is Unpaid Second Principal Collect Loan Modification Documents
If there are late fees or past due amount over $50 Collect Seasoned Funds
If there is no Escrow listed Collect Property Taxes
If there is an overage or shortage showing No action needed
BO HAS A BUSINESS ON SCHEDULE (E) THAT IS NOT ON THE APPLICATION. ARE YOU REQUIRED TO GET DOCS FOR THIS BUSINESS? IF YES, WHAT DOCS DO WE NEED?
DOES NOT MATTER IF IT HAS A PROFIT OR A LOSS, IF THERE IS A BUSINESS ON THE SCHEDULE (E) WE ARE REQUIRED TO GET THE FOLLOWING DOCS:
1040, BUSINESS TAX RETURNS, P&L, BALANCE SHEET, ASSETS. (K1'S IF THEY ARE NOT IN THE BUSINESS TAX RETURN BECAUSE LESS THAN 25%)
What tax form and what schedules do we need for a (C) Corp?
1120 is listed in top left corner
All the following schedules:
C
J
K
L
M1
M2
IF THE BO HAS LARGE DEPOSITS INTO THEIR BANK ACCOUNT, WHAT ARE THE TWO THINGS WE SHOULD WE GET BEFORE MOVING IT FORWARD?
* LOE FOR THE DEPOSIT AND
* PROOF OF WHERE THE DEPOSITS CAME FROM (I.E. BANK TRX, CREDIT CARD STATEMENT FOR BALANCE TRX)
What documents are needed for Foster Care income?