Recently one of my mortgage brokers submitted a loan for funding, a conventional 30 year fixed rate purchase, nothing out of the ordinary. We can close it within 21 days. Part of the underwriting process is to send out a form to the IRS called a 4506-T, used to verify that the borrower's tax return information the lender receives matches the IRS records. This is where the Russian hackers come in (the hackers could have been from anywhere but apparently this is the information given by someone at the IRS).
According to reports, the hacking of U.S. tax returns is believed to have originated from Russia between February and May of 2105 with originally 114,000 accounts accessed but as of August 2015 that number had grown to 334,000. Because of this, the IRS is rejecting many 3rd party requests, such as the 4506-T, if that individual's returns were involved in the hack. Be prepared if your lender is not proactive in their underwriting procedures when issues such as this occur and it could (and should) have been handled earlier.
I'm not sure why a lender wouldn't order the 4506-T as soon as possible? Maybe it's the fee charged by the IRS to answer these requests and if the loan doesn't close it's a loss by the lender. Fortunately for my clients the 4506-T is sent and paid for immediately. This is one of the many reasons why we're known as the number one wholesale lender in the country.
If you are a mortgage broker in need of a fast and easy lender for your borrowers, with no overlays and no delays - "Post TRID", please contact me so I can help you make your contract dates and generate referrals from thankful real estate agents and borrowers. We Make Lending Easy!
Trent Dalrymple, Account Executive
United Wholesale Mortgage
(800) 981-8898 ext. 5581