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Bank Account Data May Streamline the IRS Tax Transcript Process


According to a new report, bank account data may be the key to streamlining the IRS tax transcript process. IRS verifications with the use of bank account data could yield a decline in delays.

"'This is an alternative that can be used where borrowers will fit into the appropriate criteria based on their net income and their cash-flow streams,' said Brent Chandler, founder and CEO of FormFree Holdings, which works with Envestnet-Yodlee to provide automated verification of a borrower's income and assets using data from banks and other sources," according to National Mortgage News.

The report states that bank data will help verify the applicants source of income through specific transactions such as direct deposits and payroll activity. Lenders would have access to checking account records that should provide all of the aforementioned information.

"We're starting with W-2 employees like we did with data validation for Day 1 Certainty, because that is the bulk of the borrower base," said Andrew Bon Salle, executive vice president of Fannie Mae's single-family business, according to NMN.

"But 'that could change over time' depending on the needs of future borrowers, he added."

To learn more about how bank data can make for a more efficient IRS verification process for lenders and applicants, click on the image above.

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