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I'm applying for a mortgage and am being asked to request that the IRS send my last 2 years' tax returns to the lender.

  • I am not, never have been, self employed.
  • I've provided W-2s and bank statements that are beyond sufficient for the ratios.


Is this going too far? There's no use for the tax returns in underwriting my loan. Would you tell this lender to pound sand? What's the weirdest privacy-invading request you've gotten from a mortgage lender?

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I would tell them to pound sand, and just pay cash for the house. That should surely teach them a lesson for invading yo... (more)

blueiedgod (May. 01, 2013 @ 8:42a) |

She has a new roof. She can now go with a different bank.

rufflesinc (May. 01, 2013 @ 9:45a) |

LukFilm-

How do you know PenFed didn't involve the IRS? I'm thinking about applying with them. Were your W-2's "accurate"... (more)

MelP2 (Jun. 19, 2013 @ 9:49a) |

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Have you provided the tax returns yourself to them and they think yours aren't legit?

dobby10 said:   Have you provided the tax returns yourself to them and they think yours aren't legit? No, I didn't provide tax returns.

That is standard for a conforming loan- every lender I've dealt with has required that. Think about it from their perspective- they want to make sure you are telling the truth about your income and debts. The most annoying requests usually involve sourcing deposits into bank accounts. One time a lender inquired about an address that my sister lived at 5+ years ago and required an explanation signed by me. I have no idea how they even got that address- we've never shared any credit.....

Every lender is going to ask you to sign a 4506-t. Its in every package for every settlement I conduct.

Are you talking about IRS Form 4506? This form has been a part of the closing documents for every mortgage and refinance I've done.

Very standard since the whole housing crash.

Here is an article that touches on some reasons why: http://www.bankrate.com/finance/mortgages/why-mortgage-lenders-w...

ksuwldkat said:   The most annoying requests usually involve sourcing deposits into bank accounts. Yeah, of course they only ask for two months of statements so if you plan ahead you can "seed" them.

I can print up a W2 that shows any income I want. It is more difficult for me to fake how much I reported in income to the IRS.

This must be a relatively new thing. When I bought my first house in 2002, I didn't have to do this. Even when I refinanced I didn't need to provide anything directly from the IRS.

For my purchase and both refinances I've had to provide a 4506-t.

Eh? Some one is going to "hand" you half a million dollars and want to make sure you aren't lying. I find it fairly reasonable. I just refinanced twice in the past two years and they have been super strict asking me for a ton of info, but we wouldn't be in this economic mess if banks/mortgage lenders did their due diligence.

I never had to do that until about 2007-2008. Now it is standard procedure for mortgages.

Weird requests ? just in this forum We've seen lenders require you change the carpets and paint the window trim before a loan is approved .

Requesting your tax returns is completely normal these days

I thought this thread is about lender asking for nakked pic.

That is nothing out of the ordinary.

As far as the weirdest request from a lender . . . We had to provide 20 some copies of leases, paid tax bills (all properties owned free and clear), and a letter from the seller stating why they were selling the property for under market value. They also would not use/count $50,000 I had in my checking account because it was paid to me by my business (I am the only owner). We also had to explain every transaction over $1000 for the last three months. It was a real pain and reminded me why I have not purchased a property using a mortgage since for several years. We were pre-approved for twice as much as we asked for and still had to jump through numerous hoops and provide additional information multiple times. Good luck with your loan.

Hope your loan is approved


I couldn't believe that the bank wanted the seller to verify and sign a letter stating why I was getting such a good deal on the purchase price.

I recently bought a house and had to provide my last 2 tax returns as well. This is normal to me.

A friend in the business told me lenders request lots of things they don't even care about because the Government (who backs many/most of their loans) has gotten very strict about claiming they didn't due their "due diligence" prior to issuing a mortgage, and will refuse to pay for the default if they don't have the smallest piece of documentation in the file. When I got a mortgage, they actually required me to provide copies of checks deposited into my account for tiny amounts, like $20!

drobins9 said:    When I got a mortgage, they actually required me to provide copies of checks deposited into my account for tiny amounts, like $20!Yup, as someone who buys rental properties with mortgages, this is why I either deposit checks that aren't related to my rentals or my W2 into another account (large amts), or cash them (small amts). I use these funds to pay my bills and pay for renovations of the rentals.

How are people providing copies of canceled checks? I didn't think banks even returned them any more.

Most banks provide online images of cancelled checks.

tedteddy said:   This must be a relatively new thing. When I bought my first house in 2002, I didn't have to do this. Even when I refinanced I didn't need to provide anything directly from the IRS.

I had to do it in 2001.

I've closed 10 mortgages, this is normal.

hpt3256 said:   What's the weirdest privacy-invading request you've gotten from a mortgage lender?

Pics. And not of the property

Rather disappointing when I didn't get the best rate. At least I wasn't considered subprime, though.

Half dozen closings here, on the last 4 I had to sign the form so they can review my taxes. New normal since 08.

SUCKISSTAPLES said:   Weird requests ? just in this forum We've seen lenders require you change the carpets and paint the window trim before a loan is approved .



Maybe they just want the carpets to match the drapes.

You not only can fake any W-2 info, you can also fake any tax return--and it's easy to do. TurboTax, for instance, will generate your return from the numbers you feed into it; its business version will generate the W-2s as well. There are PDF editing packages that can take any PDF file and make it editable, so you can change the numbers in it in the same font, size, and style as the original document--that makes it simple to change a real bank/brokerage statement to a fake one.

The mortgage companies should ALWAYS have asked for 4506-T return information directly from the IRS. They'd should also get other documents (like bank statements) directly from the source but, so far, they don't do that.

One of the reasons for the housing collapse were the many "liars loans" that were issued.

OP must be only use to liar loans (stated income) back in the pre 08 days.

Just walk away. I wouldn't want a mortgage from someone who doesn't trust my word.

Ecuadorgr said:   Just walk away. I wouldn't want a mortgage from someone who doesn't trust my word.

And what is it with banks requiring a signature? Can't we just spit and shake on it?

CreditGuy said:   You not only can fake any W-2 info, you can also fake any tax return--and it's easy to do. TurboTax, for instance, will generate your return from the numbers you feed into it; its business version will generate the W-2s as well. There are PDF editing packages that can take any PDF file and make it editable, so you can change the numbers in it in the same font, size, and style as the original document--that makes it simple to change a real bank/brokerage statement to a fake one.

TurboTax? Editing PDF files? Why bother--anyone can draw up whatever tax return they like with the empty forms and a ball point pen. There's no requirement to use a printer to fill in the forms.

It's a moot point though for would-be fraudsters since mortgage companies will also ask permission to retrieve your filed returns. If they don't match the ones you submitted, you're going to have a problem.

With my latest mortgage, PenFed took the forms I submitted to them, no IRS involvement.

It has been standard practice for many years to have the borrower sign a 4506-T Request for Transcript of Tax Return during the application process or at closing. It doesn't necessarily mean that the lender is going to actually submit it to the IRS, but they like to have it in the file just in case there is some question as to the authenticity of the borrower's documentation.

Take a look at your closing package and you might find that you signed one without even realizing what it was.

LukFilm said:   With my latest mortgage, PenFed took the forms I submitted to them, no IRS involvement.

I'm also looking to buy a house. I'm super new to the process and the information I've gathered in the past month is so overwhelming to me. I don't really know where to start. I have a car loan with PenFed and am interested in their mortgage offer. However, I'm concerned that since I basically know nothing about house buying process, is it a good move for me to choose PenFed? I mean, they don't have an office in my city. If you could elaborate more on your experience doing business with them, I'd greatly appreciate it.

Thanks!

dhl said:   Most banks provide online images of cancelled checks.

I guess that would have to be a factor in changing banks - first, print images of any check you might need in the future. Because I'm assuming once you close your account, no more access to images.

kranky said:   dhl said:   Most banks provide online images of cancelled checks.

I guess that would have to be a factor in changing banks - first, print images of any check you might need in the future. Because I'm assuming once you close your account, no more access to images.
I've done mortgages with three banks and none have asked for more than two months of statements. So don't change banks less than three months before you get a mortgage.

To those who responded, thanks a lot for the info.
To those who gave red to the question, congrats on being such dutiful lemmings, I also have a bridge to sell you, PM me with your birth certificate and SSN for details... everyone else is doing it.

hpt3256 said:   To those who responded, thanks a lot for the info.
To those who gave red to the question, congrats on being such dutiful lemmings, I also have a bridge to sell you, PM me with your birth certificate and SSN for details... everyone else is doing it.
So I take that as you are not going to be a "dutiful lemming" and tell them to shove it, right?

Oh, pics?

Wow he asks to tell the lender to 'Pound sand' and he's surprised he got red?

Instead OP should just be 'denied' on the loan for not providing all info requested.
Who knows? Next month's requirement might be blood donation. But if it is required I would probably do it.

Skipping 9 Messages...
LukFilm-

How do you know PenFed didn't involve the IRS? I'm thinking about applying with them. Were your W-2's "accurate".. or?
I am self employed and unfortunately my w-2's don't reflect much of anything, so I need to find a way to get approved. My credit score isn't very high 640, I believe.



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