Posted by 101livescan on 10/18/13 9:28am
Msg #488586

Back in the saddle again

NATIONAL MORTGAGE NEWS this morning:

Now that the federal government shutdown is over, the Internal Revenue Service has started processing Form 4506-T requests again.

“We have received one completed request so far today. The order was placed on Sept. 30, 2013,” a lender said.

CoreLogic said it started receiving completed IRS transcripts Thursday morning. “The IRS is processing requests on a first-in first-out basis and has stated most sites are currently completing work submitted Sept. 27-30,” the vendor said in an email to clients.

The IRS had been shut down for 16 days and the lack of IRS verification of borrowers’ income and other key tax data were uncomfortable for many lenders and investors.

Many rely on the IRS transcripts to protect themselves from borrower fraud and buyback risk.

Fortunately, Congress agreed to a compromise to end the shutdown and passed a bill Wednesday evening to temporarily fund government operations and extend the debt ceiling.

CoreLogic noted it is unclear how long it will take for the IRS to work through the 16-day backlog of 4506-T orders.

Meanwhile, the Social Security Administration is expected to be back online no later than Monday so it can process requests for verification of Social Security numbers.