Training Classes
Evaluating the Self-Employed Borrower
an MGIC Designs for Learning™ Class
Schedule Analysis Method (SAM) - Basic
What do self-employed borrowers have that employed borrowers may not have? Their own business — and a much more complex tax return.
Who Should Attend
Processors, underwriters, loan officers
Format, Time Frame
Live on e-Train, 1.5 hours
Classroom, 3 hours
This Basic class covers the self-employed borrower's personal tax returns and involves limited business tax schedule analysis. This class is a good starting point for those new to cash flow analysis using the Schedule Analysis Method (SAM).
Overview
As business owners, self-employed borrowers prefer to minimize income to reduce taxes. The problem with that is, lenders look at income as a basis of earnings and the ability to afford and sustain homeownership.
Join MGIC for this comprehensive workshop that will help you dig deeper, step-by-step, through today’s tax returns to develop a clearer picture of your self-employed borrower's financial standing. In it, you’ll learn to:
- increase efficiency in processing and underwriting SEB loan applications;
- understand documentation requirements, acceptable income and underwriting criteria;
- review personal tax returns and schedules;
- recognize rental income properties and their losses and expenses, including noncash expenses;
- understand recurring vs. nonrecurring income or loss; and
- spot red flags on a 1040 that could affect an underwriting decision.
