IRS processing backlog of requests from mortgage lenders

The Internal Revenue Service is back up again and has begun processing requests for tax return transcripts, starting on a first-come, first-served basis.

The agency is reportedly currently fulfilling the Form 4506-T requests submitted between Sept. 27 and Sept. 30, just before the 16-day government shutdown started. Many mortgage lenders rely on the IRS transcripts to verify borrowers’ income and other tax data in order to protect themselves from borrower fraud and buyback risk, according to National Mortgage News.

The Social Security Administration, which verifies borrowers’ Social Security numbers, is expected to be back online no later than Monday.

Source: National Mortgage News