Qualifying the borrower


Guidelines vs Common Sense ...Which do you use?

Mortgage LoansIn evaluating a mortgage loan applicant's ability to pay, many lenders use the Fannie Mae guideline of around 33% of pre-tax income. If you need to be able to sell the loan, industry guidelines

Posted May 01 2008 by Linda Keith

It's not just YOUR bank...Senior Loan Officer Opinion Survey

Getting tougher to get your commercial and commercial real estate deals approved? You are not alone...but you knew that. The Federal Reserve's recent Senior Loan Officer Opinion Survey confirms what you already know and puts

Posted Apr 01 2008 by Linda Keith

From Taxable Income to Recurring Cashflow: Lenders start here

In my training workshops we call this "Canada to Mexico". This idea is for you if you find that you are getting lost in a sea of tax returns, every interruption means you have to

Posted Mar 28 2008 by Linda Keith

Back to basics: Cash flow, good underwriting and spotting problems early

In a recent article in the RMA Journal, Gerald Dent, EVP and CCO of Zions Bancorporation, explained the shift to fundamentals this way: "The 1989-90 economic downturn changed the way we lend money, ... from

Posted Feb 19 2008 by Linda Keith

Fear Factors: Questioning the viability of businesses and of lenders

"Businesses and transactions that may have been marginally viable in the recent past may no longer be viable when the risks they represent are more appropriately reflected...", says Don Wilson, President and COO of Amcore

Posted Feb 11 2008 by Linda Keith

What millionaire women say about Lenders

As I was reading the Millionaire Women Next Door by Thomas J. Stanley, PhD I was saddened. A bit of background: I was the second woman auditor ever hired for both the Washington State Department

Posted Feb 05 2008 by Linda Keith

Recommended Reading for Loan Officers...you might be surprised

One of my tax return analysis clients requires all loan officers in training to read the book: The Millionaire Next Door by Thomas J Stanley, PhD. I completely agree. We are all human and it

Posted Feb 04 2008 by Linda Keith

Self-employment income...can you add it, too?

Desperate for more qualifying income? Do you go flipping the pages of the tax return to see if there is more income, anything at all, you didn't notice the first time? Ah! Schedule SE has

Posted Dec 12 2007 by Linda Keith

Business Valuation: Lending to the buyer of a business

Yesterday I got an email from a lender/client of mine. Her borrower is buying the business and she is trying to assess whether the purchase price is in line. Check these resources to better understand

Posted Oct 16 2007 by Linda Keith

Lender responsibility or borrower choice? Three more points of view…

You may have found yourself in a conversation defending the lenders who participated in sub-prime offerings. Or you may feel the companies who offered those loans are getting what they deserved. Whatever your view, here

Posted Sep 21 2007 by Linda Keith