Who can you recommend if an underwriter has turned down a loan from a schedule A expense?

Are you talking about un-reimbursed business expenses perhaps? I don't know of any current mortgage product that would ignore this. It is standard these days that this amount is subtracted from income which can easily create a denial. Other lenders that will be posting may have a better answer for you. If it is something other than that please post more specifics. Thank you and hope it can be resolved!

If un-reimbursed employee expense is the schedule A deduction that resulted in a denial than unfortunately you are going to get the same answer at just about any lender. These guidelines come down from the top (Fannie Mae, Freddie Mac, FHA) and all lenders are required to follow them.If it was a close denial (just out of this lenders approvable range) you may be able to complete the loan at another lender. I would disclose the schedule A deductions right up front moving forward.

If they are on the line for un-reimbursed expenses it is all the same. Underwriters are required to subtract it from income. This rule is from Fannie Mae/Freddie Mac/FHA, etc, not the specific lender. How is it that this is coming to light now? Did the lender not have your tax returns until recently?

I haven't heard of that but if it is a recent change I wouldn't see it until I had to research it on a current loan. Look at when that info was posted. If it was over a few months ago it may not be allowed today. Rules are still changing. Regarding the time they had your tax returns, I must say the loan officer should have factored in the un-remimbursed expenses from day one. It is up to us to make sure our customer qualifies. If we have questions we get answers before taking the loan application so loans aren't denied at the 11th hour. I believe my fellow originators on this forum would agree. I do like your diligence in looking for a resolution and hope you succeed!