As we discussed on Monday, the IRS made an updated to their Income Verification Express System (IVES) earlier this month. The changes were designed to protect tax payers against looming cyber threats (insert ominous music). Immediately following the update, reports of delays in processing borrower tax validations poured in. Whatever the issues are (P.S. we still don’t know what specifically is wrong with the system) it’s leading to the validations being done manually… ugh actual paperwork? Gross…
The concerns are that this “manual” processing will lead to industry wide delays in processing borrower tax validations which in turn will results in blown locks, missed closing dates… all the stuff we lenders hate and try to avoid. The IRS has come out and stated they are “aware” of the issues and are working on both a short-term and long-term fix… but like the actual problem that has occurred, details are limited.
My suggestion is to get those 4506-T documents in as quickly as possible and look to push out your locks and/or closings a couple of days.
Oh, one last thing. The CFPB is requesting more information about their experiences with the free credit score providers. They are encouraging everyone to provide comments or feedback. You can submit your comments here. It looks like the CFPB is still doing CFPB type things… regardless of who is in charge.
The opinions expressed in this post are the sole view of the writer and do not reflect the opinion of Princeton Mortgage Corporation.