Gateway Mortgage group Lending
Division is continuing to enhance our Fraud
Detection and
Misrepresentation Protection Processes.
Fraud or misrepresentation that
impairs the integrity of the loan is a major concern throughout the
mortgage industry. We
appreciate the efforts that all of you are making to prevent fraud from
occurring
in our business.
In order to further assist you in identifying potential misrepresentation and
or high risk lending,
we will
implement additional income verification requirements that will help identify
loans that may be subject to this
issue. Please see
below for these additional requirements.
All loan files must contain
documentation from
the IRS to
validate the income used for qualification.
The most recent 2 year’s available IRS Tax Return
Transcripts (1040) for all
borrowers must be included in the loan file. The income used to qualify the
borrower must be
supported by the income reported on tax transcripts from the IRS. Additional
IRS verifications
such as W2 or 1099
transmittals should also be included if they are required to validate
income. If a borrower is
not required to
file an income tax return, the loan file must include a written explanation as
to why the borrower
was not required
to file an income tax return. The
Branch/ LO/Processor should include a written explanation of
any discrepancies
between the IRS transcript income and the income documentation supplied to
qualify the borrower.
The Tax Return Transcripts and
written explanation must be included when the credit file is submitted for
underwriting.
If the Branch/ LO/Processor does
not submit the 4506 into Underwriting the file will be Submitted and a 4506
will be ordered
by Gateway however
there could be a delay in the file closing as we will require the 4506 to be
back and reviewed by
Underwriting before a CTC for
loan will be released.
The process before June 1st was that
Gateway was pulling all 4506's once the file came in for underwriting. We pull 2 years Tax returns on all borrowers
and income types at the time of our Underwriting due diligence. This has slowed the process in the past. In order for us to streamline the process we
have decided to allow the broker/processor to order your own and deliver with
the file so no closings are waiting for 4506T results to come back in.
The process before June 1st was that
Gateway was pulling all 4506-T's once the file came in
for underwriting. We pull 2 years Tax
returns on all borrowers and income types at the time of our Underwriting due
diligence. This has held up some closings
in the past. In order for us to streamline
the process we have decided to allow you to order your own and deliver with the
file so we do not hold up any closings waiting for 4506T results to come back
in.
• Effective June 1, 2010, for
all loan submissions to
Steve Peters
Gateway Mortgage Group LLC
(972)908-3390--
May 27, 2010