As mentioned in an earlier blog, Paperless Mortgages, the IRS has finally made a decision to start using electronic signatures on its form 4506-T. Many organizations have been using e-signatures for quite some time now; the IRS and FHA were among the few who were holding back. Anyway, the IRS has indicated that it will begin accepting electronic signatures on 4506-T in January 2013.
What are the advantages of making this switch? It will reduce the paperwork involved in the loan process, which will in turn expedite the proceedings. Electronic signatures will also make the work less labor-intensive and efficient, therefore increasing customer satisfaction; making it a boon for both lenders and borrowers. From January onwards, 4506-T can be added to all the other ‘disclosures’ that already accept e-signatures.
The Mortgage Bankers Association (MBA) is a national association that represents the real estate finance industry throughout the nation. Here is what they had to say about the IRS’s decision, “With this announcement, the IRS is making this process much easier and more efficient. As anyone who has purchased or refinanced a home can attest, the volume of paperwork involved can be quite burdensome. Allowing for electronic signatures will save time and reduce the likelihood of errors or loss of documents. This is a win for consumers and lenders alike,” said MBA President and CEO David H. Stevens.
Since January is just around the corner, the IRS is expected to release more information regarding the new venture. Stay tuned to our updates.