Qualifying Borrowers Using Personal Tax Returns Part 1: Schedules A, B, C & D

Tuesday, February 14, 2017

12:00 pm – 1:30 pm PT
1:00 pm – 2:30 pm MT
2:00 pm – 3:30 pm CT
3:00 pm – 4:30 pm ET

Verifying income from self-employed borrowers can be tricky. Although the best place to find income is the borrower’s tax return, it only shows taxable income. Borrowers don’t repay debt with taxable incomes – they use cash flow. Overestimating income from a tax return can lead to approving a weak loan that could eventually cost your institution tens of thousands of dollars. Underestimating income can cause denial of good loans. With this process and the free software that is included, you will learn an easy, reliable process to convert a borrower’s personal tax return (Form 1040) into a cash flow statement.

This session is designed for consumer and commercial lenders and will cover the first page of the Form 1040: Schedule A (Itemized Deductions), Schedule B (Interest and Dividend Incomes), Schedule C (Sole Proprietorship Incomes), and Schedule D (Capital Gains and Losses). (Note: This method does not follow Fannie, Freddie, or QM rules used in mortgage lending.)

Continuing Education: Attendance verification for CE credits upon request


  • Recurring versus nonrecurring incomes or loss
  • Qualifying and nonqualifying income from interest and dividends in Schedule B
  • Determine pass-through interest and dividend income from partnerships or S Corporations
  • Four forms of hidden income and one hidden expense in Schedule C
  • When to accept income from capital gains, installment sales, and other sales

    • Free copy of Lenders Tax Analyzer© software
    • Employee training log
    • Quiz you can administer to measure staff learning and a separate answer key


"Qualifying Borrowers Using Personal Tax Returns Part 2: Schedules E & F"
on Tuesday, March 14, 2017


This informative session is designed for anyone in the lending area including chief lending officers, service representatives, sales staff, new accounts personnel, loan officers, loan underwriters, credit analysts, loan processors, branch managers, CEOs, and other key lending staff.

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