Updates Regarding IRS Form 4506-C & Tax Transcripts
Effective Date: Immediately
The MPF Program would like to remind PFIs that for all MPF Traditional and MPF Xtra initial loan applications dated on and after August 1, 2021, are required to include tax transcripts in all Mortgage Loan Files selected for post-closing quality control review, as recently communicated MPF Announcement 2021-50.
The MPF Program has made the following 4506-C & Tax Transcript updates:
- Added a clarification to Section 5.9.8 of the MPF Traditional Selling Guide, to reflect that PFIs are not required to obtain tax transcripts for a Borrower when all of that Borrower’s income was validated by the DU validation service. Borrowers that have not had their income validated through the DU validation service are required to obtain the tax transcripts.
- Replaced all references of 4506-T with 4506-C in the MPF Product Guides and Forms.
As a reminder, failure to provide the tax transcripts in a QC loan file will be cited as a QC exception, the severity of which will be determined by the applicable MPF Bank and/or Investor.
For additional information, see MPF Traditional Selling Guide Section 5.9.8 - 4506-C and Tax Transcripts, and MPF Xtra Selling Guide Section 5.4 - 4506-C and Tax Transcripts.
- MPF Announcement 2021-71