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Lending to Self-Employed Borrowers

Jul 30 2:00 PM - Jul 30, 2020 3:30 PM
Jul 30, 2020 2:00 PM - 3:30 PM

Lending to self-employed borrowers can be fraught with challenges, includingproper documentation, income validation, repayment sources, etc. Thiswebinar will demystify underwriting for these borrowers and provide usefuladvice on how to retrieve the information you need.

Learning Objectives

  • Use Form 1040 as the primary means to identify income sources for self-employed borrowers
  • Identify underwriting documentation required to determine a borrower’s payment coverage ability, liquidity, and leverage
  • Explain the underwriting documentation requirements to self-employed borrowers
  • Review your policy regarding self-employed borrowers to identify enhancement opportunities
  • Document and identify all repayment sources
  • Lend more confidently, especially with unsecured credit

Lending to self-employed borrowers can be challenging, especially for smaller financial institutions that specialize in retail credits, without a seasoned commercial lending division to reference or underwrite credits. This session will take the mystery out of underwriting self-employed borrowers and provide practical steps to: identify income sources; request verification documents, including income tax returns and K-1 schedules, deriving cash available to service debt; and identify required debt service, including debts not listed on the borrower’s credit report.

In addition, this webinar will provide insight regarding the importance of understanding borrower liquidity and leverage. The strength of a borrower’s personal financial statement is especially important when the credit is unsecured, or the LTV is at,or above, policy limits.



Aaron Lewis, Young & Associates, Inc.

Aaron Lewis is a senior consultant at Young & Associates, Inc. With over 15 years in the banking industry, his expertise is now dedicated to the lending division of Young & Associates where he assists financial institutions with loan, ALLL, policy, and credit process and compliance reviews. He also conducts seminars on credit risk and compliance.

Prior to joining Young & Associates, Aaron was the Vice President Credit Administrator of a community financial institution in southeast Michigan and managed all facets of the lending function, including originations, underwriting, ALLL analysis, servicing, and secondary market compliance. He holds a Bachelor’s in finance from Michigan State University and graduated from the Graduate School of Banking, University of Wisconsin.




Live and recorded webinar, handouts, quiz with answer key and training log are included.

Your registration includes access from up to three locations, making it easier to share and learn with remote staff during the coronavirus crisis. Training materials will be available to download the day of the event.

Additional Info

Event Type


Topics Covered

  • Live Webinars
  • Lending & Collections