Golden 1 Credit Line FRUSTRATION with underwriting

[Creditaddict]

I have been with underwriting for over 3 weeks at this point I think for my Approved $15k Credit Line pending income.

I originally sent K'1 for each LLC, 2017 and 2018 Personal AND Business Taxes AND 1065 release of tax transcripts.

Fast forward to last week, they still had questions of verifying my income so I forwarded over our newly completed 2019 taxes.

Today, they are saying businesses show a loss so they can't approve unless I want to add something else.

1. Business losses have ZERO to do with income and a K1 should show that most of the time.

2. We sold 1 business last year with some carry back financing (found out today, underwriter is removing that business from consideration completely since it's sold now! WHAT?!)

You can't speak to underwriting by the way, you speak to lending who makes notes and calls over... 

I was like in 2019 I have a tax bill due of over 6 figures and you can't prove my less than 6 figure reported income!?

She comes back from calling underwriting (he remembered reviewing my taxes) says it's a loss, so no they don't consider any of K'1 or sold business!!!!

I'm so frustrated I want to close my accounts and tell them off but my stubborn side won't allow it and I am just hitting my head on the wall going if you only base income off the number after deductions and write-offs then basically your credit union wouldn't lend to Jeff Bazos??!

Furthermore, a business loss, has about zero to do with personal income.... not the way they see it!

Best she could do after 25 minutes of exhausting conversation was offer to "see" if a supervisor from lending would call me Monday.

[bourgogne]

Hi, I dont have the time to get into it but they are geared for students and people starting off in credit imo.  I had to deal with them recently with an 18yo I mentor.  if you are 16.5 and need a co-sign car loan they are great but for anything else they are a complete waste of time and I am trying to be nice here.  I mean it, I have not connected with anyone that knows what is up at the place.  the reviews bear this out.

[J-F168]

Good morning mate, sry to heaf that you have prob with Golden1. Recently I was approved for their rewards CC and a personal loan. Indeed they're requesting a lot of documents and the last paystub(s) no late than 30 dayswas a must requirement. I am a nurse and for me time is not an option. I called them and explain the situation and they're super friendly adn rdy to help, in my hymble opinion i would call them and try to explain and see if they may accept any type of docs. I hope a supervisor or anyone will help you and give you green light. 

Best of luck!

[Anonymous]

That is frustrating..... sounds like underwriters don't know what they are doing imho. As a commercial underwriter myself if I denied every business that reported a loss we'd have no business... If a business is sold when completing a DSCR (assuming they use it) it is now a balance sheet item for the cash received and no longer can report income received from the business since it is non-recurring. All that can be included is income generated from the carryback financing or extended payouts/distributions from sale of business. Now, in my typical process I take business financials add back information from the m-1 such as section deductions, distributions....etc to generate a GAAP equivalent Income statement. After this I analyze the business and their respective stresses debt service coverage ratio of our debt is maxed out. Once this is done I move over to the personal side and take a DTI using reported income and distributions taken from the company. After this I take a global stressed debt service coverage at maxed debt obligations to make sure it can support our debt load on a global level.

Of course businesses especially LLC will report losses after distribution and other write offs. To me that makes no sense because I would take my maximum possible distribution from a low retained earnings required business. If my business is pretty much entirely run via cash flow and not cash on hand I would be taking as much of my NI as possible from that business to cover personal expenses and taxes. I can certainly understand the frustration!

(Assuming this is for a business card?) if this is a personal card you may be running into a situation where there product doesn't scale to your business and their underwriters are ill equipped to deal with multiple revenue streams and consolidating tax returns and or reconciling returns to show true numbers. I have met personal lenders that are severely lacking in credit and tax knowledge. Again you may just be out of scale for their underwriters and honestly it may be a sign of things to come....

Also, have you tried to offer up some audited financials if you have them to make it a bit easier on them since it seems they can't work their way around a tax return? 

[Creditaddict]

Happy to report I called back in this morning and I was transferred to a supervisor who read through things and then said she would escalate to a supervisor in underwriting and call me back.

Less than 2 hours later she called back and said after it was reviewed again, it was approved and I received an email minutes later saying my documents were being prepared!!

Some folks need some retraining!!

Happy for the outcome.

[AllZero]

Congratulations on your success!

[J-F168]

Congratz mate! I am happy for you. 

[Anonymous]

@Creditaddict  Congrats! Definitely agree with the additional training comment..... enjoy it! 

[M_Smart007]

C O N G R A T U L A T I O N S !