Attention! Mortgage Lenders, Realtors, & Consumers! ONE MORE THING that COULD slow the loan process down! Be afraid, be very afraid!
What is a 4506T form you ask? It has been around for YEARS, but thanks to the Countrywide Fast & Easy Loans, Stated Income Loans, No Documentation Loans, and all of this "fine mess you have gotten us in Ollie", these are now being actually executed on most every loan.
I just received a WARNING from of all people, my CREDIT BUREAU company regarding the IRS 4506T Request for Tax Transcripts form.
This form is used by most all Lenders today, and has become a frequently required document by underwriting!
Here is the list of things to watch out for, and if these BECOME an issue, it WILL slow down the processing of either your own loan, your customer's loan, or your buyers loan!
We believe that the most common reason that Tax Return Verifications
(Form 4506-T) are rejected by the IRS is due to printer and fax settings being set to scale the page before printing. When printing, please ensure that your printer or fax machine is set to "No Scaling." This will speed up the process with the IRS and keep your costs down.
Starting May 4th, 2009, the IRS will begin disallowing clarifications to the form 4506-T.
The most common reason for rejections will be:
- Illegible form
- Form size too small
- Font size or font type blur numbers and letters
- Illegible handwritten numbers and letters
Other recommendations:
Handwritten forms should be written clearly and legibly (dont cramp numbers or letters)
Do not use forms that have been faxed frequently
Replace illegible and blurred forms with new, legible forms
Test your fax machine to ensure forms are not re-sized when sent
Pure genius!!
As always, I welcome comments, questions, and of course emails!
I can be reached at Darin@osmwi.com Your "Lender for Life"
608-592-2227
Please enjoy my regular, non ALERT blogs! LOL
Proudly Serving the State of Wisconsin since 2003
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Pre-Approval vs Pre-Qualification
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Typical guvt crap
send them a form on letter size paper instead of legal and they rejet it