As previously reported here, beginning on March 1, 2021, only Form 4506-C will be accepted by the Internal Revenue Service (IRS) for submissions through the Income Verification Express Service (IVES).
As the March 1 effective date has approached, Fannie Mae and Freddie Mac have released updates to allow lenders to begin using the 4506-C immediately.
The USDA recently released a preview of updates that will be made to several chapters of Handbook 1-3555, including Chapter 9, which allows for the use of Form 4506-C.
The Department of Veterans Affairs (VA) Lender’s Handbook references Form 4506-T, but allows for use of alternative forms acceptable to the IRS, including Form 4506-C.
Currently, only the Federal Housing Administration (FHA) has not updated requirements to allow for the use of Form 4506-C. The Single Family Housing Policy Handbook 4000.1 specifies that IRS Forms 4506-T, 4506, and 8821 are acceptable, but does not allow for alternative versions.
Until the announcement of changes to FHA requirements, DocMagic will provide both IRS Form 4506-C and the June 2019 version of Form 4506-T, which does not allow for third party (IVES) information. Beginning on March 1, 2021, FHA loans will include both Form 4506-C and Form 4506-T in closing packages and Form 4506-C in initial packges.
If you have questions, please contact DocMagic’s Compliance Department.
