Our CLOES.online Mortgage Professional Program is coming soon and I am in “content hell” but, happy to say with light at the end of the tunnel. The program will be available April 1, 2019 but there is one area I want to share because we are in tax season and it may be helpful, a sneak preview!
Mortgage Practices 1 includes an episode on Mortgage Math & Income Calculations, with a detailed review of tax returns to qualify borrowers.
In this episode, we identify and review items originators, processors and underwriters may be interested in by including the actual I.R.S. Form 1040 from 2017 and compare it to the 2018 forms. The results may catch some off guard.
Up until 2017, with a few, slight variations, the first two pages of the U.S. Individual Income Tax Return Form 1040 were consistent. With the passage of the Tax Cut and Jobs Act, Congress not only changed the law, as it related to taxable income and deductions, they also changed the actual tax forms, effective in the 2018 filing year. It got me thinking, could this change slow down the underwriting process as well as add additional income conditions to your approvals.
Mortgage professionals that complete a thorough review of customer’s tax returns may need to slow down when comparing the return from 2017 to 2018. Page one of the 2017 1040 has 16 income category lines numbered 17-22 . The 2018 1040 moved the income to page TWO and income lines are numbered 1-18. Get ready for the customer questions!
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And the beat goes on! Have a great weekend!