If you’ve ever watched the TV show “COPS” or any of the many similar shows, you’ve probably come to the same shocking conclusion as I have ─ people LIE to the police! No, seriously, they do! Unless you really believe that some of them just weren’t wearing their own pants and they had no idea the person whose pants they were wearing would have the audacity to put drugs in the pockets! Really?
As scandalous as that is, I’m sure you would find it equally outrageous that people FIB on their mortgage loan applications. Sure, there are innocent mistakes and creative rounding techniques, but let’s be realistic–somebody who works as a temporary receptionist is probably not earning That Much. As mortgage professionals, you are on the hook to prevent mortgage fraud at the most simple level ─ verification.
That’s why Fannie Mae has made the use of 4506/4506T forms mandatory. You must verify income with the IRS. But even if that has been your practice in the past, how many of your forms have been rejected because repeated faxes have made the handwritten portions of the forms illegible? Worry No More. Point 7.1 has introduced a solution to that problem. These forms can now be completed on-screen and printed along with other important loan forms. What makes this feature even more valuable is the fact that the fields that the IRS must read to process the form are printed in a larger, bolder font!
To you, that means that more of your requests will go through and you can close more loans quickly. To the IRS…well, that just means more work. And I’m ok with that.