The IRS is modernizing the Income Verification Express Service (“IVES”) used by mortgage lenders to confirm the income of a borrower by adding Optical Character Recognition (“OCR”) software. The new software will read Form 4506-C, the form submitted by lenders to request a borrower’s transcripts, which will automate what was previously a manual process. In order for the OCR to successfully read the form, it must be clear of any “editing marks” outside the boxes provided on the form.
Previously, Asurity included the loan number at the top of the 4506-C for ease of identification. This information has now been removed to comply with the new “Clean Form” requirements. Although compliance with the “Clean Form” requirements are not required until October 1, 2022, all 4506-C forms originated through the Asurity system after August 5, 2022 do not include the loan number.
Please reach out to info@asurity.com with any questions regarding changes to the 4506-C.
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