Update
to MAG Newsbreak 2013-25 Dated October 1, 2013
4506T
Transcripts – Temporary Guidance
The IRS will not
issue tax return transcripts (Form 4506-T) during the Government Shutdown.
MAG has made a
company risk decision to temporarily waive the requirement to obtain IRS Tax
Transcripts for loans with a
Note date on or after October 1, 2013 on ALL products with the exception of the
non-conforming jumbo products.
·
Note:
This
policy does not apply to loans that are currently in suspense or conditioned for
non-obtainable transcripts.
Effective
immediately, for loans closing without transcripts, we will begin requiring
copies of the borrower's most recent year filed tax returns.
This is applicable for all borrowers utilizing income to qualify. All
Underwriters will begin conditioning loans for same. This will not apply to loan
products that do not utilize income to qualify. The tax returns will enable us
to identify self-employed borrowers; borrowers that claim 2106 expense and
borrower's that own multiple properties.
During
the shutdown period the IRS Form 4506T should continue to be signed at
application and closing, and the tax returns should be used to calculate income
per current policy. Production should continue to execute the 4506T (request
transcripts) as MAG will be required to re-validate the income on closed loans
with the IRS once the
government resumes operation.
Self-employed
borrowers: MAG
may require a CPA letter certifying the date the business tax returns were
filed. Business returns filed on or after September 1, 2013 will not be
eligible to close until transcripts are received.
Other
than the items addressed in this Newsbreak, there are no changes to current MAG
policy regarding self-employment or other income documentation.
This temporary
change to the MAG transcript policy will automatically expire once the
government resumes operation.
VOE’s
for Government Workers
Some borrowers who
are federal employees or receive federal benefits income may be affected by the
government shutdown. These will be reviewed on an individual basis.
FHA
·
FHA case number
ordering is still available
·
FHA
Connection is available
·
CAIVRS
are available
·
FHA
Total Scorecard is available
·
Limited
FHA staff will be available to respond to questions, emails, or other
correspondence.
VA
·
The Department of
Veterans Affairs (VA) will continue to operate
·
Certificate of
Eligibility online is available
·
Appraisal systems
are still available
·
We are still be
able to submit items that require more research however there may be a same
delays due to temporary staff reductions.
Rural
Housing
- USDA
USDA
has ceased all but essential functions. MAG will continue
to accept loans, underwrite and submit; however until the government re-opens no
new loans will be processed by USDA and no new conditional commitments will be
issued.
·
The GUS website is
down, no new or existing files can be run through GUS.
·
USDA employees are
on furlough and not available for contact.
·
Note: There is no
update on the eligible area changes.
USDA
loans that have already been issued a conditional commitment are eligible to
fund.
FEMA
Flood Insurance
The
ability to obtain flood insurance will not be significantly impacted. However,
it is likely that mapping issues or amendments will be impacted by the
shutdown.
