Lender Approval for Rental Income

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Hi BP. I have a fourplex with the mortgage and title in my name but my brother and I are 50/50 partners on everything (cash flow, capital contributions, etc.). That being said, the plan is for each of us to report the rental income 50/50 on our taxes. When my brother goes to qualify for another mortgage in the future, will the lender have any issue with him reporting the rental income even though he's not on the loan or has title to the property? Thanks in advance!

To preface this, my experience is with underwriting HELOC's and I'm not offering any financial advice.

The answer may vary by lender and would likely depend on how that income is being reported. If it is being reported on page 1 of Schedule E, they may question it since he isn't an owner of the property. If it is being reported on page 2 of Schedule E, they probably wouldn't think twice about it since they would be looking at it as business income instead of rental income.