Business tax returns and K-1s

Blend can 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.

• Borrower view during application
• Borrower view after submission
• Lender view after submission
• Trigger Logic
• Blend's logic flow for determining yearly document requests for business tax returns

Borrower view during application

When completing an application, borrowers can select Business/Self Employed in the Income milestone (if applicable).

Borrowers can then specify the Business Type (Sole Proprietorship, S-Corp, LLC, or Partnership) and percentage (%) of ownership.

 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. Refer to the trigger logic section of this article to learn more.

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.

Trigger Logic

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.