Hope LoanPort Closes Document Collection Loophole
Several mortgage servicing members of the Hope Now Alliance have agreed to offer pre-populated IRS 4506-T forms, known as a Request for Tax Transcript form, as part of their mortgage solutions application process.
“Getting eighteen members of the industry to agree to this one simple change in procedure will go a long way in reducing the timeline for faster decisions,” said Eric Selk, executive director of Hope Now.
A signed and completed 4506-T form is required on all mortgage applications per a directive from the Department of Treasury for all Home Affordable Modification Program loan modifications, Hope Now executives note. The form gives a third party permission to verify income reported to the IRS one to two years prior to the time a servicer submits such request.
The enhancement marks another step in the automation of the mortgage workout process for housing counselors and servicers who use the Hope LoanPort web platform and makes the application process easier for distressed homeowners.
In order to accommodate the pre-population of the Request for Mortgage Assistance Form and the 4506-T, Hope LoanPort updated its systems, data mapping, and contact information of all Hope Now servicing partners, says Samantha Friedman, director of product development and delivery for Hope LoanPort.
Over the past several months Hope Now and Hope LoanPort worked with servicers and non-profits to find the best ways to simplify the application process, she adds. The pre-population of these forms had been recognized “as a major stumbling block for homeowners and non-profit housing counselors” trying to fulfill servicer requirements for a completed application.
Bank of America, Bayview Loan Servicing, Carrington Mortgage Services, Chase, Citi, HSBC, Indymac Mortgage Services, LoanCare Servicing, NationStar, Ocwen Loan Servicing, PNC, Select Portfolio Servicing, SunTrust Mortgage, and Wells Fargo Home Mortgage, are among the members who agreed to participate.