Case Studies

R&D Tax Credits for Mortgage Banking Businesses

A Comprehensive Source Advisors Case Study

R&D Tax Credits for Mortgage Bankers

The mortgage banking industry is not typically recognized for its R&D initiatives, yet many companies in this sector engage in extensive research and development, especially in the realm of software development. Innovations in financial software can revolutionize loan origination, underwriting, and servicing, providing customers with lower rates and a better overall experience. Tax credits for R&D activities in this industry can significantly boost a company’s bottom line, but claiming these credits is often a challenging endeavor.

What Qualified as R&D?

The company’s unique software platform required extensive research, development, and testing. Developed within an agile framework, the software had various aspects that qualified for R&D credits. This included everything from initial high-level architecture design to active development cycles, often referred to as “sprints.”

The company also engaged in rigorous validation processes, involving multiple departments to run newly developed modules through comprehensive testing phases. These activities were pivotal in refining the software and fell under the category of R&D as they led to technological advancements in the mortgage banking industry.

The Source Advisors Solution

Source Advisors was introduced to this mortgage banking company through an industry contact. After conducting a preliminary assessment, we found that the firm had significant untapped potential for claiming R&D tax credits, particularly related to their software development activities.

Feasibility Analysis

Conducted an exhaustive evaluation of the firm's agile software development activities, identifying qualifying R&D tasks.

Financial Impact Assessment

Estimated the financial implications of claiming R&D tax credits, showcasing the significant potential for cash flow improvement..

Compliance Checks

Assured that the company’s software development activities and associated documentation were in line with prevailing tax laws and regulations.

The Results Speak for Themselves

After the completion of the comprehensive study, Source Advisors identified R&D tax credit opportunities that resulted in:

$ 0
in combined federal and state tax credits

By optimizing the company's approach to R&D tax credits, Source Advisors was instrumental in uncovering substantial financial benefits, helping the firm continue its innovative journey in the mortgage banking industry.

Request Feasibility Analysis

Get Started Today!

Source Advisors dives deep into a company’s structure and research activities to maximize both federal and state R&D tax credits.

Contact Source Advisors to turn your R&D investments into financial advantages.

Related Case Studies