Thread Options
#2128590 - 05/01/17 05:38 PM Negative Income
Compliance Newbie Offline
Member
Joined: Jan 2015
Posts: 67
We have a HMDA reportable Denial with a negative income. Applicant has no wages or salary. Interest income of $317. IRA distribution of $5,000 and Rental Income of a negative $79,864 and other income as negative $7,103 Total Income is -$81,596. How will I report this income on my LAR?

Return to Top
HMDA

   
HMDA Academy
#2128598 - 05/01/17 06:14 PM Re: Negative Income Compliance Newbie
JSD Offline
Platinum Poster
JSD
Joined: Oct 2000
Posts: 512
USA
You can't report negative income. What gets reported is the gross income use in the credit decision. A negative income would be the NET income after deducting all expenses from the gross income. You would report the net income used in the equation.

Return to Top
#2128605 - 05/01/17 06:39 PM Re: Negative Income Compliance Newbie
raitchjay Online
Power Poster
Joined: Oct 2009
Posts: 8,567
OK
I *think* JSD's last sentence was meant to say "gross" income.
_________________________
I'm fixin' to fix that.

Return to Top
#2128640 - 05/01/17 08:18 PM Re: Negative Income raitchjay
JSD Offline
Platinum Poster
JSD
Joined: Oct 2000
Posts: 512
USA
Thanks Raitchjay!
You can have a negative cash flow but NOT a negative income. You start with a Gross Income to get to the negative figure. So what ever Gross Income you started with that is what would get reported.

Return to Top