Posted by Linda Juenger on 12/15/08 4:49pm
Msg #271982

4506T question

Each borrower has their own 4506T. Instructions say to have each borrower sign each other's on the spouse line. Its no big deal to have this done, but what is the purpose. Just asking.

Reply by Prosperity on 12/15/08 4:55pm
Msg #271983

This is because most married people file income taxes jointly. One spouse can't approve the IRS to release information and the other spouse doesn't.

Reply by CopperheadVA on 12/15/08 5:45pm
Msg #271990

Actually, at the bottom of the form just above the signatures it states "If the request applies to a joint return, either husband or wife must sign." I started having spouses sign each other's form after a TC called and told me I should have done so. This way my rear is covered, even though clearly only one signature from either taxpayer is required for this form.

And I've noticed that lenders usually do not print the spouse's name on line two of the form, but rather have a separate form for each husband and wife. I ask them if they file jointly and if they do I have them sign each other's form. If I have a single borrower and spouse is nowhere else on any of the docs then I usually don't bother asking if there is a spouse to sign 4506T.

Reply by ReneeK_MI on 12/15/08 6:00pm
Msg #271992

Just MHO ...

I think the request to have a non-borrower sign is a symptom of the massive brain-drain within the industry. Asking a non-borrowing person to sign over anything at all having to do with their personal information when they have NOT applied for credit is, again IMHO, asking for trouble. The IRS does NOT require this, joint filings or not.

I recently questioned a T/C about this request, and they simply said "The Lender wants it." Well, fine, not my place to question things - but here on N/R I can certainly give my own little shout-out about it. =)

Reply by Glenn Strickler on 12/15/08 7:04pm
Msg #271993

Re: Just MHO ...

I think it is also a growing "CYA" mentality also. The loan packages seem to be getting thicker due to more and more "CYA" paperwork . Oh well. Ours is not to wonder why....................................

Reply by ChristineHI on 12/15/08 9:58pm
Msg #272003

Well, I am a mortgage processor and have been for 16 years. The 4506T form is to order transcripts of tax returns. A non borrowing spouse should not have one since they do not have any income information or tax information. They will also not have a W9. I have never run across a lender that required a 4506 form for a non borrower.
Anyway, there is usually one for each borrower since they might file separately. Each person has their own, however, there are some that are done with both signatures as well. I look at the top of the form to see what names are on it. If only one borrower's name is on top I have only the person whose name is there sign it. There should be two separate 4506 forms in there if they are married.
If the 4506 has both names on top, have them both sign it.
In 18 years this has always worked well and I have never had a problem.
That does concern me that some people are saying that there are 4506 forms for non borrowers in the docs. A non borrower is not on the loan so that does not make any sense.
Anyway, good luck and good question!

Reply by Linda Juenger on 12/15/08 10:37pm
Msg #272004

Christine, I have always done it the way you do, and that

is to have each sign their own form (if in pkg). But, this lender wants each borrower to sign each other's. I've just never had that request before. I don't have the non-borrowing spouse sign it.

Reply by Pat/IL on 12/16/08 12:05am
Msg #272005

Best Answer: Copperhead. n/m

Reply by Dave_CA on 12/16/08 10:00am
Msg #272010

Another 4506-T issue

Although I've only had 1 borrower refuse to sign because of the caution printed just above line 6 I'm surprised that more don't as the required info. is seldom filled in.
It says " Caution: DO NOT SIGN this form if a third party requires you to complete Form 4506-T, and lines 6 and 9 are blank."
I notified the Escrow Co. and explained why it was refused and they said " fine, we'll take care of it.
Has anyone else had a borrower refuse?

Reply by Maureen_nh on 12/16/08 1:13pm
Msg #272028

Re: Another 4506-T issue

You know, I never have and I'll be darned if I know why.
I asked this question in another forum and the lack of response indicated that nobody pays a bit of attention to it.
I have never refied myself but have thought if those lines were blank that I would fill them in myself.

Reply by GWest on 12/16/08 2:27pm
Msg #272031

Re: Another 4506-T issue

WAMU is now sending a blank 4506-T and requiring the Borrower complete the full form. They advise on their Signing Agent instructions what they want filled in.

Reply by Lee/AR on 12/16/08 2:46pm
Msg #272033

Re: Another 4506-T issue

In 15 years of this, I've had exactly ONE couple fill in 2 years and put N/A on the remaining 2 lines. Tho' some do come with 'years' filled in (but no N/A on remaining blank lines). Guess most people are sheople.

Reply by James Dawson on 12/21/08 6:53pm
Msg #272566

Re: Another 4506-T issue

Although this is a late reply, I had one today. Sez his lender told him he didn't need to. It is my understanding that some title co's require it and some don't. On this particular transaction there was NO dates filled in. I have noticed in the past, there were specfic years filled in.

Reply by Marian_in_CA on 12/17/08 4:57am
Msg #272073

Besides usually being just a waste of paper, time and resources... like others have said, it's probably just a CYA thing... but it isn't necessary. Like the instructions state, "Transcripts of jointly filed tax returns may be furnished to either spouse. Only one signature is required." A second signature isn't going to hurt, though. But to have each borrower listed on separate documents when they are joint filers is probably just a sign that somebody doesn't know how to streamline their paperwork or doesn't understand the forms.

Chances are, though, that the lender just "assumes" the borrowers file separately and have them sign that way to cover all the bases. If there are multiple copies of the form with the same borrower(s) listed, it could be that the lender wants more than 4 years worth of tax return data for the borrower (seems odd, but it could happen) ... and that should be indicated on line 9 with the dates. Or it could also occur when one of the borrowers has joint returns with a former spouse and they're just making separate requests to keep it clean.

If lines 6 and 9 are blank on the 4506T, then I honestly have a problem letting a borrower sign the form. I know the job is to get the form signed... but part of being a NSA is making sure that forms are not blank, right? It's always felt like a professional liability issue... never let anyone sign a blank/incomplete form. That's a basic rule in notary 101... so it should be for signing agents, too, right?