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#1973356 - 10/31/14 02:57 PM Cash Flow Income
ComplianceNerd Offline
Gold Star
Joined: Nov 2011
Posts: 378
Texas ...
Situation:
Customer is self employed, shows schedule C, E or otherwise...
Lender uses tax return figure (usually line 22) + depreciation + interest and other add-backs. This final figure has estimated taxes deducted. Then DSCR is calculated from the final number.

What number do I use????
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#1973367 - 10/31/14 03:06 PM Re: Cash Flow Income ComplianceNerd
Tater Offline
Platinum Poster
Joined: Jan 2006
Posts: 631
Missouri
Use the income (or cash flow, in this case) that was considered in the Underwriting.

GIR Page 15 (emphasis mine)

Quote:
If an application relates to a 1-4 family dwelling, enter the total gross annual income your institution relied on in making the credit decision.
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#1973370 - 10/31/14 03:09 PM Re: Cash Flow Income ComplianceNerd
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
FWIW, I agree.
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#1973476 - 10/31/14 06:06 PM Re: Cash Flow Income ComplianceNerd
Rocky P Online
Power Poster
Joined: Jun 2003
Posts: 7,460
Florida
I agree too. Just be sure the (bank requires)(lenders use) the same way to calculate income if not, it could be a fair lending issue.
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