Veri-Tax LLC, has launched a Form 4506-T electronic signature solution using the EchoSign platform by Adobe in support of the IRS’ commitment to accept electronic signatures on income verification requests. Once received and approved by the IRS for processing, an electronically signed Form 4506-T releases a taxpayer’s previous years’ income tax transcripts from the IRS to an authorized third party. This process is considered the most secure method of verifying a borrower’s income during the loan origination process. Until now, the Form 4506-T was the only mortgage loan document still requiring a handwritten signature.
After a lender or mortgage originator creates a tax transcript request, Veri-Tax facilitates the e-signature process directly with the borrower. This allows the borrower to validate his or her information before submitting the 4506–T to the IRS, thus minimizing IRS rejection rates and saving time in the income verification process—factors that will improve the borrower experience and ultimately lead to greater customer satisfaction. “With Adobe’s high level of support and functionality, we are confident we chose the best partner to successfully provide 4506-T e-sign functionality to the verification market,” said Veri-Tax Senior Director of Product Management Maria Kirgan.
Veri-Tax and Verification Bureau’s e-signature solution also reduces signature forgery, lost paperwork, and distorted data, problems that a paper-based process can pose when the 4506-T is scanned, uploaded, faxed, or sent though the mail. Additionally, Veri-Tax and Verification Bureau will accept electronic signatures on the Form 4506-T from other e-sign vendors that adhere to the IRS’ strict e-sign compliance guidelines.
“We anticipated releasing our 4506-T electronic signature option even before the IRS announced the e-sign pilot last year,” said Veri-Tax President Michael Chon, adding that a “process that takes lenders a few days to complete can now be completed within hours, helping to further streamline the verification process and close loans faster than ever before. The reduced time, effort, and cost savings will truly benefit all parties involved.”
The Adobe EchoSign Document API allows customers like Veri-Tax and Verification Bureau to integrate EchoSign's electronic signature functionality into their own applications. "We're excited to collaborate with Veri-Tax and Verification Bureau on this tremendous milestone towards ending the last mile of paper," said Kevin M. Lynch, SVP and GM of Acrobat and Document Services at Adobe. "This will truly provide automation around document workflows and accelerate signing cycles for the fast-paced world of finance."