Announcement: 4506 Changes

In August 2021, the IRS announced a modernization to the IVES transcript ordering system which takes effect on January 1, 2022. In response to the changes identified in the IRS Bulletin regarding OCR (Optical Character Recognition) technology, and to ensure that transcripts can be obtained during post-purchase Quality Control per GSE requirements, we highly recommend that the following be implemented immediately:

  • A separate 4506-C form must be generated and signed for each form type requested for each individual borrower.
  • If the borrowers filed a joint return, only one borrower’s form is required for the 1040.
  • Each 4506-C form should contain only one check mark corresponding with the requested form type in the boxes for lines 6A-7. Do not add extra form types or check extra form type boxes that are not required.
  • The 4506-C should only include the years being requested. PHH will require the number of years required by the AUS recommendation.
  • The 4506-C should be clear of any editing marks and cannot be hand-written.

As a reminder, when tax returns are used to qualify for self-employed borrowers, PHH requires the most recent one year of personal and business tax transcripts prior to purchase. When transcripts are provided, the 4506-C will not be required.

If you have any questions, please contact your Regional Sales Executive, or contact us via the support line 1-800-929-4744, Email inquiries can be sent to  PHHCorrSupport@PHHMortgage.com or RateLock@PHHMortgage.com.

Thank you for your continued business.