Cincinnati-based eLynx, a portfolio company of American Capital, announced its compliance with all guidelines recently published by the IRS for obtaining electronic signatures on Form 4506-T, Request for Transcript of Tax Return.
[IMAGE]According to FBI statistics, over 60 percent of all mortgage fraud includes income or identity misrepresentations, eLynx notes. To help combat this type of fraud, the 4506-T allows lenders to verify a borrower's income. It's a requirement for virtually all mortgage originations and loan modifications.
Until recently, the 4506-T was the only document in a mortgage disclosure package that had to be manually signed. Beginning on January 7, 2013, the new IRS guidelines allow the 4506-T to be signed electronically. According to eLynx, removing this
[COLUMN_BREAK]e-signature roadblock will not only streamline income verification, but will improve data quality and enable lenders to render decisions on loans faster.
""This was the last industry hurdle to achieve a fully electronic set of disclosures, and to move mortgage lenders closer to a paperless mortgage,"" said Sharon Matthews, president and CEO of eLynx. ""Banks will see a significant reduction in processing time and costs, an increase in accuracy and transparency, and deliver a better borrower experience.""
Matthews added, ""The IRS's decision demonstrates how government and commercial entities can come together on initiatives that benefit the entire industry.""
eLynx's eSignature service addresses all requirements of the digital Form 4506-T from initial authentication and consent, to maintaining a tamper proof seal and audit trail of the transaction. eLynx can provide an electronically signed 4506-T with all supporting data to any IRS Income Verification Express Service (IVES) provider.
Using eLynx's eSignature service, lenders can immediately realize the advantages of an electronically signed 4506-T integrated with electronic delivery and loan folders. In addition, eLynx's e-signature services can be combined with its print-and-mail services-which the company describes as ""fail-proof""-to ensure compliance with the Real Estate Settlement Procedures Act (RESPA) on mortgage disclosures.