MPF Announcement 2019-71

Update regarding Taxpayer First Act and Tax Return Information

Effective Date: Immediately (unless otherwise noted)

As an update to MPF Announcement  2019-63, regarding the borrower consent required by the Taxpayer First Act (Act), and in light of the additional guidance issued by the Internal Revenue Services (IRS) and the recently published Fannie Mae Selling and Servicing Notice, the MPF Program is clarifying that PFIs and Servicers are required to obtain and keep in the Mortgage File, a consent from all borrowers, as required under the Act, when the disclosures of tax information is made by the IRS on or after December 28, 2019.  

PFIs and Servicers may use the model consent language that has been developed by the Mortgage Industry Standards Maintenance Organization (MISMO®), or may use their own taxpayer consent form that contains substantially the same provisions as the MISMO form, as long as it complies with any applicable laws including IRS Code and regulations, and it at minimum expresses permission that such tax return information can be obtained, used and shared:

• for purposes of originating, maintaining, managing, monitoring, servicing, selling, insuring, and securitizing a loan;
• with any actual or potential owners of the mortgage loan, or acquirers of any beneficial or other interest in the mortgage loan, or any service providers for these parties, and any of aforementioned parties’ successors and assigns; and
• as otherwise permitted by applicable laws.

As of the effective date of this requirement, a consent must be included in all files selected for QC as reflected in the MPF Documentation Worksheet, and with any servicing related files being sent to Master Servicer, MPF Provider or MPF Bank for review or approval.

PFIs and Servicers are reminded that the MPF Guides and Applicable Agreements require their full compliance with any and all applicable laws when originating and/or servicing any MPF loans, and should work with their legal and compliance teams to ensure appropriate procedures are in place.

REFERENCE

IRS Guidance - Limit on redisclosure of consent-based disclosures (Section 2202)

Fannie Mae Selling and Servicing Notice (December 16, 2019)

Fannie Mae clarifying post “IRS Clarifies Effective Date and Scope of Taxpayer First Act” (December 19,2019)

Please note you can access the  MPF Guides and MPF Announcements on our MPF Website.

Visit the MPF Website to review and register for upcoming complimentary MPF Webinars.