WARNING for All Calyx Point Users!

Just 3 days ago, I had the new rules with the 4506T Request for Tax Transcripts affect my ability to close a loan as well as be efficient!  I am upset about it too!  I was on the phone with Calyx Point for about an HOUR trying to fix it, and right this minute it STILL is not fixed!

I DID NOT LISTEN TO MY OWN ADVICE!!! Arghhh 

Now, I am not upset at Wells Fargo...In fact, I am one of the few probably that LOVES working with Wells Fargo.  HOWEVER the issue on Tuesday was one of utter RIDICULUM!  (wait is that a word, or a sniglet?)

Anyway, my 4506T was REJECTED by the IRS, because THE FONT WAS NOT 12 POINT or higher! WHAT????

I had to put off a closing ONE DAY because of this.  Now, I ask you...should WE as Mortgage Lenders have known this!  I guaran darn tee ya, I do now!

I did ANOTHER BLOG on the 4506T form, and you can click HERE for a direct link to it!  It has more fun filled information...(yes tongue & cheek) and more pitfalls to be wary of!!

Recently, Lenn Harley did one of the most active and controversial blogs I have see on AR in a long long time! This is an awesome blog from someone who REALLY GETS IT!  One of the MANY things this blog has taught ME, is that education is NOW MORE IMPORTANT THAN EVER!  GOOD REALTORS want to know what we are needing as LENDERS and what we are going through, so they know what to expect and what they can do to help!  The NET RESULT is Good Communication = Good Relationship!  Realtors dont want to get caught with their pants down,  personally, neither do I!

A Realtor may not know what CALYX POINT IS!  TELL THEM!

EVEN A GREAT Realtor may not know what a 4506T is!   TELL THEM!

Realtors may not know what our "Turn Times" are....Here's an idea...TELL THEM

All of this helps build a bond, trust, and cements the relationship!

Otherwise, it is like a Tornado without the Warning Siren!

 Okay, if you dont have the MOST RECENT updated version of Calyx Point (we have 6.0) you are in trouble!  While I was on the phone with them, they showed me how to go into Print Preview....blah blah blah...none of it worked!  Can you guess what the answer from both Calyx and Wells Fargo was?

FILL IN A BLANK ONE BY HAND!  HAH!

After all that, they want me to print it large enough and clear enough to read!  How is your printing as you read this?? Looked at it lately?? LOLOLOL  Another GENIUS "RED TAPE" issue with the IRS!  They want to MAKE SURE you can read the name, address, social security #, 6 & 6a.  The ironic thing is that one of the WARNINGS FROM THE IRS stated forms was that they could not be filled out by hand! And we are expected to be professionals!  I am starting to wonder HOW we can be!!!  LOL

Granted, this blog is truly directed towards informing and aiding other Lenders today!  Nonetheless, it does give Consumers, Realtors, Insurance Agents, Title Companies, and others...a glimpse into the "Minutua" pain in the BUTT stuff we as Lenders have to deal with every day too!

At the bottom of this blog is a technical description of WHAT A 4506T is, and what it is used for!  I encourage you to cut & paste it, take it, and USE IT in your everyday mailers, solications, and responses to customer questions!

Thanks for vistiing, and as always, I encourage all comments, questions, and "off hand" remarks!!

Darin@Osmwi.com   or  608-592-2227

Other good blogs you might enjoy!

What do I need to get approved for a loan?

Open House Ideas!

Wall-E

Acronyms

IRS From 4506 T is entitled Request for Transcript of Tax Return. This form is a may be used to evaluate a borrowers creditworthiness to obtain any type of loan but it is used mainly for any kind of mortgage loan. It is used to a transcript summary of an individual's tax information to verify the income stated on the loan application made to qualify for the loan.

Lenders use the form for "Quality Control", to verify income of the "self-employed" and to detect fraud. Many lenders do a quality control check on the mortgage files they receive every day--mostly it is decided that a certain number of files a day (like every 4th file received)or any file from a "new" broker/loan officer will be thoroughly checked by the mortgage company/bank. After the file is underwritten, the file will be given to another person who will verify everything in the file. Every person who has signed any kind of verification forms will be called again to verify that he/she did write and sign that paper. Every checking or savings or asset letter will be re-verified and so will the income. If your 1040's & w2s or 1099s were included in the file, the 4506T is used to request a quick print-out which summarizes your tax returns looked like for the year/s you have provided. This summary transcript verifies the paperwork given to the lender.

This quality control and 4506T should stop any fraudulent loans from happening. If the IRS transcript shows less income than the the income represented on the loan application, then the lender can either stop the mortgage process and deny the loan or if the loan is already in place, the applicant can be asked to payoff the mortgage/loan immediately due to apparent fraud. "Legal action" can be taken, it depends on the lender and/or the state (if they become involved)as to what action will be taken against the customer, the broker/loan officer and/or both if involved.