RC_LP_U_306.4 Evaluating Corporations

The Evaluating Corporations course discusses how to analyze corporation tax returns using the Fannie Mae Cash Flow Analysis (Form 1084) to determine a borrower's allowable qualifying income. The course begins with a review of characteristics of corporations. Next, it looks at how to determine allowable income using Form 1120 and Form 1120S. Finally, case studies give students the opportunity to practice the concepts presented.

The specific instruction given in this course is based on Fannie Mae’s written guidance as it relates to determining qualifying income for self-employed borrowers. The intent is to train underwriters on the underlying principles of evaluating business tax returns rather than on interpretation, exceptions, or a given lender's specific practices. As such it is imperative that underwriter consult the individual investor’s guidance and lender's internal underwriting overlays when applying these principles to individual files.

This is a single-family/residential course.