Learn how to analyze and calculate a self-employed borrower’s income using Fannie Mae’s 1084 Cash Flow Worksheet. The session covers the review of a borrower’s 1040, K-1 and a Partnership Return (1065). We will review the tax flow and the cash flow for the borrower in our case study. The review of the K1 is critical as it pertains to the distribution of income or lack of, so the liquidity of the business will also be calculated from the 1065’s balance sheet. A solvency/liquidity calculator will be introduced.Learning Objectives: Understand the meaning of self-employed, learn to use Freddie Form 91, and review the K-1, 1065 and Solvency Test.
Recommended Prerequisites: none
Recommended Audience: Mortgage Professional, Loan Officer, Loan Processor, Underwriter