Jan. 10, 2013
today has announced a partnership with
, the global standard for eSignature, to make it easier, faster, and more secure for individuals and businesses to electronically sign and submit an essential mortgage lending Internal Revenue Service's Requests for Transcript of Tax Return form, known as the "4506-T."
The companies will help the IRS streamline processing of more than 25 million 4506-T forms it receives annually. The expediting of these forms electronically is anticipated to help stimulate and accelerate business for mortgage lenders, credit unions, credit card companies, and other lending institutions. Although the most significant and immediate impact will be in mortgage origination, this advancement is also expected to expand the use of IRS income verification in other decisioning environments such as government benefits allocation and pre-employment screening.
"The 4506-T is a required document in virtually all mortgage lending scenarios, and has long been the last remaining document in a mortgage loan application that could not be electronically signed," said
, senior director of product management at Equifax. "Our joint proof of concept pilot with DocuSign demonstrated that individuals and businesses can complete and submit government forms more quickly and efficiently online with eSignature – anytime, anywhere, on any device. This potentially removes 1-3 days from the front end of the loan application process by eliminating faxing or mailing, and enables an entirely paperless, electronically signed loan application."
As an industry pioneer in automated 4506-T processing and the leading provider of tax transcript fulfillment nationally, Equifax has championed the use of eSignature technology on IRS forms alongside DocuSign for several years. In 2011, the IRS selected Equifax, DocuSign, and 12 lenders to test the feasibility of eSigned Form 4506-T submissions. The successful nine-month pilot helped solidify the policies and procedures that will be used in the IRS eSignature program, which began this week.