During underwriting, the lender needs to verify that the income figures on the borrower's loan application match what was actually reported to the IRS. Which form does the borrower sign to authorize the lender to obtain this verification directly from the IRS?

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Form 4506-T — authorizes the lender to obtain IRS tax return transcripts Form 4506-T (Request for Transcript of Tax Return) authorizes the lender to obtain the borrower's tax return transcripts directly from the IRS. This is a critical fraud prevention tool — it allows the lender to verify that the income reported on the loan application matches what the borrower actually filed with the IRS. If there's a discrepancy, it's a red flag for income fraud. Form 1003 is the loan application itself, not an IRS authorization. Form 1098 is the annual statement showing mortgage interest paid (used for tax deductions), sent from lender to borrower. Form 1008 is the underwriting transmittal summary used when selling loans to the secondary market. On exam day, remember: 4506-T = Tax transcript authorization = income verification from the IRS.

During underwriting, the lender needs to verify that the income figures on the borrower's loan application match what was actually reported to the IRS. Which form does the borrower sign to authorize the lender to obtain this verification directly from the IRS?

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