Title Image

How Lenders Can Benefit From 4506-T

How Lenders Can Benefit From 4506-T

Fannie Mae and Freddie Mac require mortgage lenders to obtain an income tax transcript from the IRS for each loan applicant. The tax transcript is necessary to verify the income of the borrower. Lenders can remain in regulatory compliance and ensure the quality of their loan underwriting by using IRS Form 4506-T to request tax transcripts.

Form 4506-T allows a prospective home buyer to authorize a third party to receive the tax transcript. The name and address of the mortgage lender is entered on the form to designate the lender as the third-party recipient. Form 4506-T is essential to a lender because a tax transcript contains data from all the supporting forms of an income tax return.

Comprehensive nature of a tax transcript

Many home buyers are somewhat familiar with their Form 1040, but they may not be able to locate the other forms that comprise their tax return. By requesting a transcript with Form 4506-T, a lender has access to the entire tax return. For instance, a mortgage applicant may have filed additional forms to report rental income or business expenses.

Availability of multiple years

Lenders may need tax information for more than one year to obtain a clear picture of a loan applicant’s financial history. Form 4506-T can be used to request a transcript for up to four separate tax years. In addition to transcripts for individual tax returns, transcripts can also be obtained for partnership returns and corporation returns.

Availability of informational documents

In addition to income tax returns, Form 4506-T can be used to receive copies of informational returns such as Form W-2 and Form 1099. Since these informational documents are provided directly to the IRS, the use of Form 4506-T provides further verification of the income of a loan applicant. Lenders can request transcripts by contacting a provider of IRS tax transcripts.

Coming Soon!

The New Private Eyes Platform.

Background Checks | LegacyLender Solutions | Login

For any questions contact us at (925) 927-3333.

Site Security Notification

 

Use the buttons below to continue your login.

For SITE SECURITY purposes and to ensure that this service remains available to all users, this computer system employs software programs to monitor network traffic to identify unauthorized attempts to upload or change information, or otherwise cause damage. Unauthorized attempts to upload information or change information on this service are strictly prohibited and may be punishable under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act.

NOTICE: We will not obtain personally-identifying information about you when you visit our site unless you choose to provide such information to us.

Point of Contact for Security and Monitoring: Frank Santa Elena email: security@pebackgroundchecks.com Information Systems Security Officer (ISSO) for www.privateeyesbackgroundchecks.com phone (925) 927-3333.

For any questions contact us at (925) 927-3333.

Find the Right Lender Solution

Fill out the information below and we will contact you or call us at 925-927-3333



First Name*
Last Name*
Email*
Phone*
Company*
Street
City
State
Zip Code
Number of Employees
Where did you hear about Private Eyes?

Find the Right Background Screening Solution

Fill out the information below and we will contact you or call us at 925-927-3333.



First Name*
Last Name*
Email*
Phone*
Company*
Street
City
State
Zip Code
Number of Employees
Where did you hear about Private Eyes?

Candidate Assistance

If Private Eyes is running your background check, please contact our Customer Service department. A person on our team will be more than happy to assist you

Email: CSS@pebackgroundchecks.com
Call: (925) 927-3333

Private Eyes Customer Assistance

If you are a current customer, please contact our Customer Service department. A person on our team will be more than happy to assist you.

Email: CSS@pebackgroundchecks.com
Call: (925) 927-3333