Is The IRS Clogging The Mortgage Drain?

December 20, 2017 at 9:16 am Leave a comment

Image result for clogged drainThe Senate and House aren’t quite done cramming tax reform through the legislative process but the IRS apparently can’t wait to start using the tax system to impact mortgage lending. Here is what I’m talking about:

If your credit union makes mortgage loans, chances are you have used the IRS’s Income Verification Express System (IVES). The system is an online portal that allows mortgage lenders to quickly access a mortgage applicant’s core tax information including a W2 and Form 990. Typically the IRS responds to requests within two days.

However, since December 8th, mortgage industry groups have complained that the system has slowed down to the point where people aren’t going to get their mortgages approved as quickly as they otherwise would. The American Banker is reporting that groups representing a broad range of mortgage lenders expressed their concerns to the IRS and that at a conference call on Monday the IRS explained that it was aware of these concerns and working quickly to resolve the glitches. The system has undergone a series of changes in recent years as the IRS sought to strengthen data security protections.

CFPB Withdraws Debt Collector Survey Request

The CFPB, with Acting Director Mick Mulvaney at the helm, has informed the Office of Management and Budget overseen by Mick Mulvaney that it is withdrawing its plans to undertake an online survey of debt collection practices. Here is the notice.

This news melts my cynical heart (I can’t help myself. I recently watched the original Grinch, which is the only Grinch worth watching. But I digress.) The CFPB has never been all that convinced that existing debt collection laws and regulations, which generally apply to third-party debt collectors, go far enough to protect consumers who don’t, can’t or won’t pay off those pesky bills they owe. The Bureau is clearly studying making lenders subject to stricter debt collection protocols. It’s the type of potential proposal that would be hanging over the industry in a CFPB run by Cordray appointees that has about as much chance of moving forward under Mick Mulvaney as President Trump does of underselling the tax bill when he signs it into law later today. My guess is that the President will call it the single greatest step for economic growth that this country has made since the founding of the Republic.

Entry filed under: Mortgage Lending, Regulatory. Tags: , , .

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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