Posted by Linda_in_IN on 10/9/13 2:58pm
Msg #487536

More info from various sources on T4506 forms & the shutdown

Apologies if this information has already been posted. From a forum on LinkedIn, coming from a link from Mortgage News Daily. What some lenders/banks/financials are saying or directions they are taking during the shutdown as it relates to the T4506 that is included in refi packages.

The information was received from Wells Fargo, US Bank Home Mortgage, Stearns Lending, Fairway Independent Mortgage Corporation, Nationstar, Affililated, and CitiBank. I know, not the list you usually see when talking about major players, but I think it gives an indication of what some of the players are thinking.

http://www.mortgagenewsdaily.com/channels/pipelinepress/10032013-4506-t-tax-transcripts.aspx?goback=.gde_3806878_member_5793370427707379713#!

Reply by Darlin_AL on 10/9/13 3:38pm
Msg #487539

thanks for posting this Linda n/m

Reply by RonnieB/NC on 10/9/13 3:47pm
Msg #487541

This post is from TitleSource site.

Huge origination backlog to follow shutdown

Mortgage lenders are still handling loan applications during the government shutdown.

Inman News reports that lenders are still accepting applications, locking rates, processing and closing while Congress argues over a solution for national budget issues. When the shutdown concludes, there will be a mountain of backlog.

Under current regulations, lenders have to attain financial data for all applicants from the IRS, as borrowers and CPAs are not seen as reliable sources. While the IRS is shut down, lenders do not have access to that information. When things are running again, large numbers of requests will be waiting for processing on top of new requests that keep coming.

The longer the shutdown continues, the more backlog there will be across all government housing agencies. Title insurance agencies, Fannie Mae, Freddie Mac and the Federal Housing Administration are going to be hit the most. Fannie Mae and Freddie Mac cover the majority of insured loans in the U.S. and also require IRS services for processing applications. The FHA is operating with limited staff that cannot handle its volume of requests without some delay.

More homeowners have positive property valuation, which has given consumers faith in a real estate investment. While the housing market is experiencing an upward trend, the backlog will continue to grow.

Posted on: Tuesday, October 08, 2013