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.)
Note: 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.
Borrower view after submission
After submitting their main application, Borrowers will be navigated to complete the follow-up.
Lender view after submission
On the Lender Side, LOs can see the auto-requested follow-ups under the Follow-ups Tab of the loan.
Note: Blend evaluates the start date and a Jan 1 cutoff date to determine if one or two years of K-1s are requested.
Blend will request up to 2 years of each document type depending on the time of the year (see below).
Blend's logic flow for determining yearly document requests for business tax returns
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.
DISCLAIMER: All mentioned features on this page may not be applicable to your institution, please reach out to (firstname.lastname@example.org) for more information on what features are enabled for your use.