Despite the outcome of tax reform, determining a self-employed borrower’s cash flow is challenging. Tax returns show taxable income. But borrowers don’t repay debt with taxable income; they use cash flow. Incorrectly estimating cash flow from a tax return can result in bad loan decisions, causing avoidable losses and missed opportunities. Learn an easy, reliable process to convert a borrower’s personal tax return (Form 1040) into a cash flow statement using the free software included with this course.
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 Income), Schedule C (Sole Proprietorship Income), and Schedule D (Capital Gains and Losses). (Note: This method does not follow Fannie, Freddie, or QM rules used in mortgage lending.)
Attendance verification for CE credits provided upon request.
Who Should Attend?
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.
If you are having issues with registering online, please contact CBAO's Education & Training Coordinator, Lianne Simeone, (614) 610-1877.