IRS Mortgage Applicant Program Lacks Security Protections
"Federal auditors say the popular “tax transcript” program run by the Internal Revenue Service and used by millions of mortgage applicants a year lacks adequate security protections against disclosures of tax-return details to people who shouldn’t be allowed to obtain them." - Kenneth R. Harney
"Mortgage borrowers routinely fill out an IRS Form 4506-T, which grants permission for third-party vendors to access their tax records and send them to banks and mortgage companies. Lenders use the service to verify applicants’ income. A key security issue in the mortgage-related portion of the program is whether the third-party “requester” of a transcript has been properly vetted by the IRS and found eligible to receive transcripts." - The Washington Post
Mortgage applicants need to take great care when completing the IRS Form 4506-T. Line five which contains the name of the third party that will obtain the transcripts should never be left blank.
Dianthus, Kentlands Photowalk, Gaithersburg, MD
Photograph by Roy Kelley
Roy and Dolores Kelley Photographs