Mortgage Lenders Taking Risks, Closing Go Forward with no 4506
Mortgage lenders around the country seeing a crisis coming are starting to be more accommodating to borrowers that need to close.
For Fannie Mae/Freddie Mac conventional loans and FHA mortgages, borrowers who are not self employed and/or own multiple properties can close on agency products without reverifying their income tax returns with the Internal Revenue Service.
This is a departure from standard operating procedures and brings the risk of possible loan fraud due to the fact that someone could manufacture W2s and pay stubs and have their employer (real or not) verify the fake amounts.
There will be no exceptions to this variation and once the shutdown is over, the 4506 rule will be reinstated.
(UPDATE) Lender will get a 4506 signed and send it in after the loan closes. If they do not match, you will get foreclosed on and turned over to the U S Attorney for mortgage fraud which has a penalty of 30 years in jail +/or $1,000,000 fine.