Income Verification for Self-Employed Borrowers

Step 1

• Borrowers can connect to their personal and business bank accounts with Plaid CRA.
  • Note: A minimum 680 FICO is required to utilize business bank accounts.
• Plaid CRA communicates directly with the borrower’s banking institution to obtain deposit history data which is analyzed to determine an income trend.
• If there is an invalid return from the vendor, then proceed to Step 2.
• Note: For accounts that are jointly owned, borrowers will be prompted to add the joint owner as a co-borrower to the transactions unless there is a justifiable reason (such as a death).

Step 2

• Borrowers may connect to their tax provider via a Pointserv prompt to permit the retrieval of their most recent two years of personal tax returns. If a valid result is returned through the borrower-login process, then the verification may be used to support income validation.
• Tax Returns obtained through Pointserv are reviewed by an underwriter to determine eligible income.
• If there is an invalid return from the vendor, then proceed to Step 3.

Step 3

• Borrowers can provide documents that require manual review.
  • The borrower provides the two most recent years personal tax returns and business returns (if applicable). These documents will be reviewed by an underwriter to determine eligible income.