The ubiquitous Form 4506-T, not a plain piece of paper

Folks who borrow mortgage money have a lot of documents to sign at closing. One of the so-called standard forms found in use today is IRS Form 4506-T that allows the lender to obtain a transcript of your personal income tax returns.

As pointed out in the LA Times, the Form 4506-T is not just another piece of paper.

The form authorizes a loan officer or mortgage investor to get electronic transcripts from the Internal Revenue Service covering multiple years of your federal income tax filings. The IRS has supplied private tax return information to lenders for years, but the data typically were requested only at the close of escrow, and mainly for self-employed applicants or those with unusual income patterns.

While we have seen the form used at the closing table, now it seems the form is being requested twice, the first at application and the second at closing.

As the story says,

Take Form 4506-T seriously. It's a powerful tool, and potentially exposes otherwise confidential personal financial information to unknown and uncontrollable numbers of people. It is not just another part of the paper blizzard.

For the full article, go here.

For your next title order
or if you have questions about what you see here,
contact Stephen M. Flatow
Vested Title Inc.
648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

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