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New ALERT from the IRS regarding the 4506T request for Tax Transcripts!

By
Mortgage and Lending with Funky Quail Vintage

 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
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    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

     


     

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    Tom Burris
    NMLS# 335055 - Baton Rouge, LA
    Texas/Louisiana Mortgage Pro - 13 YRS Experience

    Typical guvt crap

    send them a form on letter size paper instead of legal and they rejet it

    May 01, 2009 10:05 AM
    Darin Osenberg
    Funky Quail Vintage - Nashville, TN

    Hey Dallas Star!  I am assuming this is ONE MORE EXCUSE for EVERYONE TO MAKE on WHY the loan is taking SOOO long to process!

    I can see it now...Apply in January, close in May!! LOL

    Thanks!

    D

    May 01, 2009 10:07 AM
    Katiejo Franks
    Real Estate and Beyond, LLC - Scottsdale, AZ

    Change is here. Great update

    May 01, 2009 10:21 AM
    Cherry Wings Realty
    Cherry Wings Realty - Traverse City, MI
    Your Traverse City Michigan Realtor

    That is our fine government at work again.  Always looking out for our best interest.  :)

     

    May 01, 2009 10:29 AM
    Darin Osenberg
    Funky Quail Vintage - Nashville, TN

    Katie Jo...YOU ARE RIGHT!  Could we have some more change ...PLEASE??????  JK!!!

    Thanks for playing!  :)

    Christine -  Hah!  I think Barney Frank and his crony idiots actually THINK they are helping...when in reality, they are hurting!  WOW!   Thanks for commenting & keep marketing!  Down succumb to the gloom & doom!  :)

    Darin

    May 01, 2009 10:33 AM
    Wayne Weaver
    ERA Team VP Real Estate - Bemus Point, NY

    You have to love the IRS trying to help!

    May 01, 2009 10:43 AM
    Karen Fiddler, Broker/Owner
    Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
    Orange County & Lake Arrowhead, CA (949)510-2395

    Yes..cause why would the government to make anything easier! to move the market!

    May 01, 2009 11:28 AM
    Margaret Woda
    Long & Foster Real Estate, Inc. - Crofton, MD
    Maryland Real Estate & Military Relocation

    Our Federal Government at work in the financing industry...we ARE in trouble any time they get involved.

    May 01, 2009 11:32 AM
    Jeff Belonger
    Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
    The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

    Darin... bah humbug... lol   Well, we haven't had problems in the past and I don't anticipate problems in the future, at least on our end.  The form is filled out in our system and can be made into a PDF form then. It's clear and precise.  But good tips here, because I have heard issues with other lenders.  Besides, who knows if you are a broker, that it's the lender making excuses.  Just food for thought.

    jeff belonger

    May 01, 2009 01:07 PM
    Gerry Suarez Jr.
    New American Funding NMLS 6606 - Orlando, FL
    FL Mortgage Guru

    Darin,

    Thanks for the heads up dude! As someone who has already seen files delayed to "clarifications" it's good news to know. It's easy enough to ensure the document is clean and legible when banking the loan, but if you're brokering it you will be further at the mercy of your end lender.

    Gerry Suarez, Jr.

    Your FHA Loan Pro!

    May 02, 2009 12:53 AM
    Darin Osenberg
    Funky Quail Vintage - Nashville, TN

    Wayne & Karen, well, isn't out government ALWAYS trying to help??  LOL

    Yep, this is just one more rung in the ladder...I dont mean to be ebeneezer scrooge, but knowing this in advance is sure to help some people!

    Thanks!

    Jeff, ours does the same thing..and yes, we havn't had any problems.  I think moreover they are talking about the customer that we email it to...and THEY fax it back to us...say it is then A LITTLE crooked...etc..or hard to read from their fax...

    Not every customer is technology driven, but the good news is that more and more are! 

    Margaret- It seems like every time the government gets involved in the financing, we end up having NEW FORMS, new problems, and more hurdles..Fortunately, for the people doing business the "RIGHT WAY", we all dont have anything to fear or worry about...The ones that complain the loudest are generally the ones tjat arent set up to handle the changes!    Thanks for comment!

    Gerry-  As always, thoughtful comments from a person I respect!  Thanks!  Youre right, one more reason to have CUSTOMERS EITHER come IN to your office, or become a mortgage banker!!  :)  Most of my customers, and I know Jeff's and many others tho...rely on the internet...and I personally email out almost everything these days!  It is SOO much easier for people's schedules, and time restrictions etc...So much more easy!  Thanks again!

    Darin

     

     

    May 02, 2009 04:23 AM