Posted by Dave SoFla on January 06, 2003 at 23:09:11:
They’re always signed at the time a client completes an application with me. It is a safeguard in case fraud is detected or thought to be in the file. It has been used in a few of my colleagues files but nothing ever came of the audits. I would imagine that if the borrower committed fraud and the tax returns supported this, then there would fines and possible prison time depending if it was mail, wire or other types of fraud.
Dave
IRS form 4506, request for tax return verification - Posted by Jeremy
Posted by Jeremy on January 06, 2003 at 22:53:22:
Anyone have any experience with this form? Is this signed mostly for the lenders records in the event of an audit or do they usually send them in for a copy of your return? What’s the likely result if they don’t match?
4506 - Posted by GMann
Posted by GMann on January 07, 2003 at 12:47:40:
If you are doing a full documention loan then all the numbers should match unless there is fraud. Read the penalty for false information on the 3rd page of the mortgage application (1003)around the sign. area.
If you are doing a stated income loan then don’t sign a 4506. Tell the loan officer to ask if you have to sign one at closing and tell them you aren’t going to sign it. PERIOD! Some lenders include it in the closing package for you to sign but are just hoping (not requiring) that the borrower signs it.
If you are self employed (as most real estate people are), you are at a higher risk of being audited. Why have the liability out there if you don’t need it.
Re: IRS form 4506, request for tax return verifi - Posted by Charles Clark
Posted by Charles Clark on January 06, 2003 at 23:14:15:
Hi Jeremy,
If you are in doubt, I would suggest change lending plans to a stated income or a NoDoc loan. There are plenty of them around and even though you will pay a little more, it is worth the risk.
Charles Clark
neiloans@hotmail.com