by Ben Nicolas
on Tuesday, June 9th, 2009 at 2:28pm.
If all borrowers are required to sign IRS 4506-T forms that allow underwriter to verify income documentation, why do lenders require income documentation? Shouldn't they just be able to take a signed 4506-T form get the IRS transcript and verify the income coming directly from the IRS? Wouldn't the world be easier for loan originators and processors too if they could just order a 4506-T verification direct from the IRS covering a 2 year time period, get the transcript and divide by 24 to get the borrowers monthly income?