Events Calendar

Webinar: Qualifying Borrowers Using Personal Tax Returns Part 1: Form 1040 & Schedules B & C
Wednesday, February 19, 2020, 03:00pm - 04:30pm

Borrowers don’t repay debt with taxable income; they use cash flow. Can you accurately interpret personal tax returns and identify reliable, recurring income?

AFTER THIS WEBINAR YOU’LL BE ABLE TO:

  • Identify recurring income and learn what to ignore
  • Determine cash flows from interest earning and dividend producing investments (Schedule B) 
  • Correct unreliable “pass-through” interest and dividend incomes earned from Partnerships and S Corporations (Schedule B)
  • Identify hidden incomes and a hidden expense in sole proprietorships (Schedule C)

WEBINAR DETAILS

What’s your decision-making process for qualifying a borrower for a loan? Do you understand how to convert taxable income (which is practically useless) into cash flow? The key is learning how to obtain a reliable monthly or annual cash flow from a personal tax return. Incorrectly estimating cash flow from a tax return can result in bad loan decisions – or missed opportunities. Once you’ve properly converted taxable income into cash flow, that information can be used in your credit scoring model, debt-to-income ratio, or disposable income calculation.

Designed for consumer and commercial lenders, this two-part series will teach you an easy, reliable method to convert a borrower’s personal tax return (Form 1040) into annual and monthly cash flow statements using the free software included with this course. Part 1 will cover Form 1040, Schedule B (Interest and Dividend Incomes) and Schedule C (Sole Proprietorship Incomes). (Note: This method does not follow Fannie, Freddie, or QM rules used in mortgage lending.)

WHO SHOULD ATTEND?

This informative session is designed for lending personnel, including loan officers, loan underwriters, loan sales staff, credit analysts, loan processors, branch managers, and other key lending staff. Universal bankers and frontline staff involved in the lending function will also benefit.

TAKE-AWAY TOOLKIT

  • Free copy of Lenders Tax Analyzer© software
  • Employee training log
  • Interactive quiz

SPEAKER:  Tim Harrington, TEAM Resources

Tim Harrington is a Certified Public Accountant, author, and consultant who has specialized in working with community financial institutions since 1992. Since 1996, Tim has been President of TEAM Resources, a firm which provides consulting, strategic planning, and training from coast-to-coast.

A presenter at over 1,000 financial conferences, seminars, and webinars, Tim has provided consulting and training for hundreds of community financial institutions in nearly every state and four countries. Tim advises boards and senior management teams on strategy, profitability, and governance and works with staff on leadership and lending. Tim’s book “Eisenhower on Enlightened Leadership” has been used by many boards and management teams to improve internal leadership. In addition, he is a faculty member of three financial institution schools and is the author of the popular lending software “Lenders Tax Analyzer.”