DISCLAIMER: Not all features mentioned on this page may be applicable to your institution, please reach out to (email@example.com) for more information on which features are enabled for your use.
Blend now offers the ability to automatically request Business Tax Returns or K-1s depending on a borrower’s type of business and ownership percentage. See the example listed below and the Business Tax Returns detail for full trigger logic.
1. When completing the Application, the borrower can select Business/Self Employed under the Income Process (if applicable).
2. The borrower then adds Business Type (Sole Proprietorship, S-Corp, LLC, or Partnership) + Ownership %. (For more information scroll to the trigger logic section.)
3. Depending on the information provided by the borrower in the loan, the relevant follow up will be auto-requested after submission. Please check the chart below to confirm when each type of follow up may be requested from the borrowers.
What would the process look like for Borrowers and the Lenders?
After submitting their main application, Borrowers will be navigated to complete the follow-up.
On the Lender Side, LOs can see the auto-requested follow-ups under the Follow-ups Tab of the loan.
Please note: Blend evaluates the start date and a Jan 1 cutoff date to determine if one or two years of K-1s are requested.
What is the auto-trigger logic?
Blend will request up to 2 years of each document type depending on the time of the year (see below).
How does Blend determine which years to request from borrowers?
Blend looks at today’s date and the deadline to file date (shown below) to determine which years to request each document for. Here are some example scenarios to illustrate Blend’s logic:
- Brenda Borrower owns 10% of an S-Corp, ABC Company, and she started there on 1/1/2016.
- If Brenda is applying for a mortgage on 4/16/18, Blend will request 2016 and 2017 personal tax returns and 2016 and 2017 K-1s.
- If Brenda is applying for a mortgage on 4/14/18, Blend will request 2016 personal tax return and 2016 and 2017 K-1s.
- If Brenda is applying for a mortgage on 12/31/17, Blend will request 2016 personal tax return and 2016 K-1s.