Temporary Tax Transcript Flexibilities
Newrez LLC "Newrez" Approved Correspondent Clients: In response to temporary delays from the IRS in processing tax transcript requests, the following flexibilities are effective immediately and will remain in place until further notice.
Conforming, FHA, and VA Loans
As a reminder, Newrez does not require W-2’s or IRS tax transcripts prior to closing unless the underwriter deems that the tax transcripts are required due to a red flag.
The USDA requires tax transcripts prior to loan closing to verify household income for all adult applicants; however, USDA will allow a loan to close without transcripts if the loan file is documented with correspondence to and from the IRS to support the omission. “Failure to file” tax returns by the due date is not a valid or acceptable explanation.
Smart Series Products
Please refer to the Product Profile for tax transcripts requirements. If applicable, borrower-provided tax transcripts may be provided in lieu of transcripts from the IRS