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Worry Ensues Among Lenders Following IRS Issue

An IRS Issue has Mortgage Lenders worrying about a possible logjam. After discovering the problem, mortgage groups have been trying to reach out to the IRS, though it does not look like the IRS has responded.

"The agency made changes to its authentication system, which verifies tax returns provided by mortgage applicants, on Dec. 8. The system, known as the Income Verification Express System or IVES, is designed to ensure the tax returns are not fraudulent," according to National Mortgage News.

"But mortgage groups claim that problems with the system surfaced on Dec. 13, less than a week after the IRS made changes to it."

With these issues, Anne Canfield, executive director of the Consumer Mortgage Coalition told the publication that the IRS issue would cause mortgage closings to become delayed. The delay, according to Canfield, would be "many, many months," so this is not a small scale matter by any means.

She also suspects that if the issue is not resolved, the ripple effect of the issue could move to consumers, the mortgage industry and eventually the economy.

To learn more about the IRS issue and what could happen if it isn't resolved, click on the image above.

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