has announced a request for input
on the development of standardized language to gain consent for the utilization of tax transcripts by stakeholders in the mortgage process.
The new request is in compliance with the Taxpayer First Act that was signed into law on July 1. This law states a taxpayer must provide their permission (“consent”) for the information to be shared. Although this component of the law must be implemented by Dec. 28, it does not state how the consent should be obtained or documented. The Internal Revenue Service (IRS) has not provided guidance on how this should be managed.
MISMO said that input may focus on the creation of various methods, forms, language and tactics to ensure that parties that receive tax data from the IRS have taxpayer consent to share the information with other participants in the mortgage process. Any standards created will be made available for public comment prior to being finalized.
“It is important for the mortgage industry to develop a consensus solution to ensure compliance with the new law,” said Rick Hill, executive vice president of MISMO and MBA’s vice president of technology. “Given the likelihood that many different industry functions may be affected by this requirement, MISMO is seeking collaboration from the industry to avoid any unnecessary disruption to lenders, servicers, and consumers ahead of the December deadline.”