WASHINGTON–NAFCU and CUNA have joined five other trade associations in a comment letter to the IRS that suggests a new proposal could have “broad ramifications” that could “disrupt mortgage lending activity.”
The groups are expressing their concerns over a September 2016 notice from the IRS to tax professionals and tax transcript vendors that would require these individuals and companies to utilize an updated identity proofing, financial verification and mobile phone verification. The group said the IRS move could “adversely affect the ability of consumers to obtain financing to purchase, refinance or borrow against the equity in their homes.”
“The ability to directly affirm taxpayer income reported to the IRS serves a crucial function in the extension of credit to Americans seeking to purchase homes,” the trade groups said. “The provisioning of tax transcript information from the IRS to the lender, without the possibility of alteration by prospective home buyers, serves as a key fraud deterrent. Lenders rely upon this independent IRS function in the vast majority of residential mortgage loan originations.”
NAFCU, CUNA and the other association acknowledged the need for “continuous improvement in cybersecurity practices,” and further noted they have been supportive of increased cybersecurity practices, education, and training.”
But, the groups added, “We are concerned that some components of the new IRS cybersecurity requirement, as well as the incredibly short implementation timeline, could create operational problems that might significantly impair consumer’s ability to obtain credit to purchase a home.”
The groups said their two primary concerns are insufficient time to prepare and data and government data exchanges.
Also signing the letter were the American Bankers Association, Consumer Mortgage Coalition, Independent Community Bankers of America, and the Housing Policy Council of the Financial Services Roundtable.
The full copy of the letter can be found in CUToday.info’s The gov.
WASHINGTON–NAFCU and CUNA have joined five other trade associations in a comment letter to the IRS that suggests a new proposal could have “broad ramifications” that could “disrupt mortgage lending activity.”
The groups are expressing their concerns over a September 2016 notice from the IRS to tax professionals and tax transcript vendors that would require these individuals and companies to utilize an updated identity proofing, financial verification and mobile phone verification. The group said the IRS move could “adversely affect the ability of consumers to obtain financing to purchase, refinance or borrow against the equity in their homes.”
“The ability to directly affirm taxpayer income reported to the IRS serves a crucial function in the extension of credit to Americans seeking to purchase homes,” the trade groups said. “The provisioning of tax transcript information from the IRS to the lender, without the possibility of alteration by prospective home buyers, serves as a key fraud deterrent. Lenders rely upon this independent IRS function in the vast majority of residential mortgage loan originations.”
NAFCU, CUNA and the other association acknowledged the need for “continuous improvement in cybersecurity practices,” and further noted they have been supportive of increased cybersecurity practices, education, and training.”
But, the groups added, “We are concerned that some components of the new IRS cybersecurity requirement, as well as the incredibly short implementation timeline, could create operational problems that might significantly impair consumer’s ability to obtain credit to purchase a home.”
The groups said their two primary concerns are insufficient time to prepare and data and government data exchanges.
Also signing the letter were the American Bankers Association, Consumer Mortgage Coalition, Independent Community Bankers of America, and the Housing Policy Council of the Financial Services Roundtable.
The full copy of the letter can be found in CUToday.info’s The Gov at http://cutoday.ssd.thinkcreativeinternal.net/THE-gov/