Tax Return Verification (TRV)

You probably go to great lengths to verify the income of salaried borrowers through an independent source. Yet, when faced with self-employed borrowers, or borrowers who have incomes that are difficult to verify, are you accepting the borrower’s tax returns without verifying their accuracy? More and more lenders have found that mortgage and identity fraud is a real, and all too often common, threat to the integrity of each and every loan. TRV Reports are a simple, efficient, reliable national source to verify the accuracy of tax returns provided to you to verify income. And, because the reliability of traditional sources of income verification are many times uncertain, more and more lenders are relying on TRV for all of their income verification needs.

FACT

Fraudulent tax returns represent one of the top four sources of mortgage fraud! This alarming condition was included in a recent annual report to the MBA of America by the Mortgage Asset Research Institute, Inc. (“MARI”), Reston, VA.

Why TRV?

TRV has not only proven to be a valuable tool for fraud detection and income validation for self-employed borrowers, but can also be utilized for:

• Borrowers who work on a commission basis
• Borrowers who encounter problems obtaining their W-2s
• Borrowers who file extensions with the IRS for income taxes
• Borrowers who own 25% or greater interest in a business
• Borrowers who are employed by family members
• Borrowers who own rental property
• Borrowers who cannot locate their prior returns

Additional Advantages

Many investors, such as Freddie Mac, endorse TRV services and in most instances accept TRV in place of tax returns. Additionally, TRV services include verification of the taxpayer’s social security number directly through the Social Security Administration.