We discussed borrowers who own over 25% of their company being effectively “self-employed” on Monday.

This issue came to light with one of our borrowers recently b/c the borrower let his Realtors (a team) know about his ownership interest; b/c the Realtors know lending guidelines, they had the borrower immediately contact us. This literally saved the transaction b/c it allowed us to dance around the ownership issue and ensure there would be no problems in underwriting.

The borrower thought there was no issue b/c he went from one W2 job to another. It was only b/c the Realtors were savvy enough to spot the issue that a larger blow-up was averted.

Our broader point is that it is important for Realtors to understand basic mortgage-lending guidelines. Doing so prevents issues from surfacing b/c borrowers often reveal info to Realtors that they hide from lenders. It also prevents Realtors from wasting time on borrowers who will never be eligible for financing.

JVM offers a short “mortgage basics” training class for Realtors. Please let us know if you or anyone you know would like to attend.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646

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