Updates to Post-Closing Quality Control Income Reverification and Tax Transcript Rules

Applies to: The policy revisions apply to all mortgages undergoing post-closing quality control reverification under MPF programs.

Addressed to

MPF participating financial institutions (PFIs)From the publisher, not quoted from the text

Investor

MpfFrom the publisher, not quoted from the text

Affected areas

Employment verification; Records

Affected documents

IRS tax transcripts; Employment and income verification records

Applicability confidence

Needs review: some rows could not be matched to a quote from the source

Summary by AWACS. FHLB Chicago MPF's guide is proprietary, so AWACS does not reproduce its text. Read the official announcement ↗ (opens in a new tab)

What to review: Review updated quality control reverification standards that permit obtaining tax transcripts only when tax returns were used to qualify the borrower and limiting reverification to qualifying income and employment sources.

QC implications

• Confirm that quality control processes only obtain IRS tax transcripts when tax returns were used during underwriting to qualify the borrower.
• Verify that post-closing employment and income reverifications are limited to sources relied upon for loan qualification.