Carrithers of Criterion Services, Inc., says, "I believe lenders should invest in either outsourcing their training or hiring on-staff personnel to provide regular training sessions designed not only to keep everyone updated and informed, but also to provide guidance in interpretation of guideline changes." Independent trainers cover underwriting topics such as appraisals, self-employed borrowers
, condo/PUDs, and FHMVA loans.
* Data that illustrates the self-employed borrower
's capacity to handle the loan.
But with self-employed borrowers
things can be much more variable, with some lenders demanding three years worth of accounts to support any application.
"The GST implementation is likely to have a transitional impact on small businesses and self-employed borrowers
, the key target segments of NBFCs.
For self-employed borrowers
, Angel Oak underwrites the loan for income based on 24 months of bank statements.
The bank said that self-employed borrowers
might find repayment tough.
Even short-term amortizations with balloon payments at the end, the kind that have been popular with self-employed borrowers
, will have a hard time getting the QM seal of approval because of that ability-to-repay requirement, McElmurry said.
They could affect self-employed borrowers
and small business owners who use deductions to reduce their taxable income.
Since MetLife Home Loans is smaller than Bank of America, Appel said he believes it's better poised to handle New York City's high prices and many self-employed borrowers
or those in professions with cyclical income may have difficulty meeting these traditional requirements.
Ray Boulger of brokers Charcol said: 'Self-employed borrowers
are often no longer penalised for their status.'
Advances in the underwriting process for selfemployed borrowers and the advent of online applications now mean that more self-employed borrowers
can get access to most of the marketleading deals on the market in the same way that employed borrowers can.