shawnohurley
31 Posts |
 Posted - 05/29/2008 : 5:28:07 PM
|
Huh, we (Accredited)should accept your borrower's bank statements on 1099 based on what I understand of the UW guidlines. What happened?
Here are the GL:
1099
A borrower that is a 1099 employee, if working for only one company, may also have a VOE completed by an employer. The same requirements from above would apply. If the borrower works for several companies simultaneously, VOE’s from all employers would not be required.
Bank Statements
When using bank statements for income verification, 24 months may be used for Alt2 Doc loans, depending on the loan program. Bank statements can be used to verify self-employment and 1099 income. Bank statements may also be used to verify non-salary income such as social security, pensions, etc.
When reviewing bank statements, only consistent deposits should be used for income. Any unusually high deposits should not be included in the average. The bank statements should reflect the names of borrowers on the loan. No additional names should appear on the account. In order to use account transfers or credits from other accounts, copies of all bank account statements must be provided and analyzed for acceptable use as income. Otherwise, all transfers must be excluded from the calculations. If rental income is being used, the gross rents are deducted from the monthly deposit total.
Using 24 months bank statements, unless prohibited by specific program criteria, requires overall Grade A+ A, or A-.
• No more than 2 NSFs or 2 months with negative ending balances in the last 12 months are allowed. Requirements are subject to Corporate Underwriting discretion on a case-by-case basis.
• Fixed income as the sole source of income is not allowed.
• Personal bank statements: Income may be calculated by using 100% of deposits if at least 2 months acceptable evidence of a separate business account is provided. This requirement may be waived with a minimum Credit Score of 640. If this requirement cannot be satisfied, then income must be calculated by using 75% of the average deposits.
• Business bank statements: Apply a 25% expense factor for home-based businesses, and a 50% expense factor for non-home based businesses. Percentage of ownership determines percentage of income to be utilized on DBA or Corporate accounts.
• Self employment must be verified for a minimum of 2 years on all bank statement loans.
• Exceptions to expense factor may be considered with Corporate Underwriting approval.
For purposes of the loan origination system, the Doc Type for 24-month bank statement income is “Alt2”.
quote:
Originally posted by Brianquigley
Accreditted needs to see tax returns for my 1099 contractor
DOes anyone have a bank statement program for this borrower?
|
|
|
Search for: 
