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?
Just thinking out loud into the blogosphere...
John C. Posted on Tuesday, June 16th, 2009 at 4:27am.