AWACSMortgage compliance intelligence from Flightline

Pennymac Correspondent · Investor Announcement 26-97 · Published

Fannie Mae Form 8821 Taxpayer First Act Consent Standards

Pennymac conforms to Fannie Mae guidelines permitting IRS Form 8821 in place of Form 4506-C for tax transcripts. Borrowers must provide consent authorizing disclosure of tax records to Fannie Mae and prospective mortgage holders under the Taxpayer First Act.

InformationalChecks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

Applies to: Mortgages utilizing IRS Form 8821 in place of Form 4506-C to obtain tax transcripts.

Addressed to
Pennymac correspondent sellersFrom the publisher, not quoted from the text
Investor
PennymacFrom the publisher, not quoted from the text
Affected area
General
Affected documents
IRS Form 8821; Taxpayer First Act consent form
Applicability confidence
Needs review: some rows could not be matched to a quote from the source

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

What changed

Summarized from the announcement
RequirementPreviouslyNow
Taxpayer First Act consent and IRS Form 8821 authorizationClarifiedNot statedWhen utilizing alternatives such as IRS Form 8821, borrowers must authorize disclosing tax information to Fannie Mae, and consent forms must explicitly allow sharing with third parties, loan owners, service providers, and assigns.

What to do

AWACS interpretation · not source language

What to review: Review guidelines permitting IRS Form 8821 as an alternative to Form 4506-C and the associated Taxpayer First Act borrower consent standards.

QC implications

  • Verify that files utilizing IRS Form 8821 include borrower consent permitting disclosure of tax records to Fannie Mae and explicitly allowing sharing with third parties, loan owners, service providers, and assigns.

Source and record

Version 1 · archived

Checks

  • Source verified: Passed

    The document ID, link and publication date match the official source.

  • Quotes match the source: Passed

    Every quoted passage appears word for word in the official document.

  • Requirements backed by the source: Passed, adjusted automatically

    Anything marked required is backed by the requirement language and dates in the source.

    • An independent check could not confirm which way a change moves a rule; it is not marked as required

  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed

    The record follows the AWACS format and uses its standard labels.