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HOPE NOW Alliance Now Offering Pre-Populated 4506-T Forms

NationalMortgageProfessional.com
Jan 17, 2014

Several mortgage servicing members of the HOPE NOW Alliance have reached an agreement to offer pre-populated IRS 4506-T forms as part of their mortgage solutions application process. The 4506-T, also known as a "Request for Tax Transcript" form, gives a third-party permission for verification of income reported to the IRS for one to two years prior to the request. A signed and completed Form 4506-T is required on all mortgage applications per a directive from the U.S. Department of the Treasury for all Home Affordable Modification Program (HAMP) loan modifications. Housing counselors and servicers utilizing the Hope LoanPort (HLP) web platform will increase efficiency since the crucial 4506-T will be pre-populated, eliminating another manual step. Ultimately, homeowners reap the benefits of an easier application process resulting in faster decision-making by servicers. As a part of this enhancement, HLP has updated its systems in order to accommodate the pre-population of the Request for Mortgage Assistance (RMA) Form and the 4506-T to allow for more data, improved data mapping, and accurate servicer contact data to pre-populate in the forms. Previously, the acquisition of a properly completed 4506-T by a homeowner was a major stumbling block for homeowners and non-profit housing counselors in fulfilling the requirements for a completed application for a decision by a servicer. HOPE Now members that have agreed to this practice include Bank of America, Bayview Loan Servicing, Carrington Mortgage Services, LLC, Chase, Citi, HSBC, Indymac Mortgage Services (Division of OneWest Bank), LoanCare Servicing, NationStar, Ocwen Loan Servicing, PNC, Select Portfolio Servicing, SunTrust Mortgage, Inc. and Wells Fargo Home Mortgage. Other mortgage servicers who use HLP, and have agreed to pre-populate the 4506-T form as a best practice, include M&T Bank, Residential Credit Solutions, Inc. and Resurgent Capital Services LLP. “HOPE NOW has worked hard over the past several months, with its servicing members, the non-profits and HLP to find ways to simplify the application process. Getting eighteen members of the industry to agree to this one simple change in procedure will go a long way in reducing the timeline for faster decisions. By taking these measures, the customer experience will be enhanced and non-profits working with families will have a much easier time assisting homeowners with workout solutions,” said Eric Selk, Executive Director of HOPE NOW. “We are happy to work with HOPE NOW and our servicing partners on this initiative,” said Samantha Friedman, director of product development & delivery for Hope LoanPort, “By working quickly on this streamlined solution, the industry demonstrates a dedication to changes which assist struggling homeowners and their advocates in pursuit of a timely foreclosure alternative solution.”
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