Recent 1099--Caution!

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Mortgage and Lending with America's Home loans - Santa Rosa, Petaluma Mortgage Broker BRE 01895185 NMLS 312312

A quick heads-up for our community. I'm seeing a sudden and somewhat forceful trend among potential buyers out there. Many companies are in the process of, or recently have, switched their employees from W2 to independent contractor status (1099). A borrower who has just been switched like this will almost certainly get denied for a home loan, so you may want to make certain of their employment status before wasting a tremendous amount of your time getting a recent 1099 into contract, only to have it explode on you in grotesque fashion shortly thereafter.

 

1099

This is, no doubt, an Obamacare workaround by these companies and I think they will find it quite illegal over time as the NLRB investigates and prosecutes them. In the meantime, be mindful of this practice--it's new and growing. Make sure your loan officers are on the lookout for borrowers with recent W2-1099 conversions. This may save you frustration and, more importanly, time. And time is.....well, you know...

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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
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These employers are making a very foolish move that could bankrupt them when the irs catches up with them.

Feb 12, 2016 01:36 PM #1
Rainmaker
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Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Obama care brought a lot of undesirable consequences....this is one of them. 

Mar 14, 2016 04:28 PM #2
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Scott Lawson

Mortgage Broker FHA, VA, refinance or purchase
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