PPDocs Working on New IRS Form 4506-C; Details Forthcoming, New FNMA/FHLMC Uniform Instruments, PPDocs End-of-Year Holiday Schedule and more!

On November 1, 2022, the IRS announced their final published version of Form 4506-C. Both the current and new versions of the Form 4506-C will be accepted through February 28, 2023. Effective March 1, 2023, the newly published Form 4506-C will be the only form IVES Participants can use. We are working on the new forms and will have further details later.

The new Form 4506-C cannot be edited. IVES Participants will need to ensure their customers fill out the form as they intend it to be processed. Lines 5 through 8 must be complete before the taxpayer signs. The exceptions to this are:

• Line 5aii, IVES participant ID number
• Line 5aiii, SOR Mailbox ID
• Line 5b, Customer File Number
• Line 5c Unique Identifier (if included)

Major changes to the form include:

1. Signatures are required for any taxpayer listed. Only list a spouse if their own transcripts will be requested and they will be signing the request. Forms with missing signatures will be rejected.
2. IVES Participant information for Lines 5a now includes the IVES Participant ID number. All IVES Participant information is required, and the form will be rejected if missing.
3. The Unique Identifier has been added to the form. This is an optional field with specific criteria. See the instructions for more information.
4. Client information for Lines 5d is required. IVES Participants that collect transcripts for their own use will list their company information here. IVES Participants that collect transcripts for another company’s use (the client model), will list the customer company information here. Forms with missing Client information will be rejected.
5. Line 6, “Transcript requested,” is only for ordering tax return transcripts and should only list the tax form number that was filed. Forms with multiple tax forms listed will be rejected.
6. Line 7, “Wage and Income transcripts,” only require the checkbox to be marked and all forms will be provided for all listed taxpayers. This request can be limited to specific form types and taxpayers by filling in line 7a for up to three forms and marking the appropriate check box in line 7b.
1. Any entries in Line 7a such as NA or Not Applicable, will be read as an entry by the OCR software. If you wish to receive all forms, leave this section blank.
2. Wage and Income transcripts are charged based off the form type and number of taxpayers per year requested. Listing three Wage and Income forms on line 7a and listing two taxpayers will incur six charges per year requested.
7. Taxpayers listed on Line 1a and 2a are required to complete their assigned signature section. Forms with missing signatures or required signature information will be rejected.
8. Authorized Representatives signing for the taxpayer(s) listed on Line 1a and/or 2a are required to check the “Form 4506-C was signed by an Authorized Representative” box. See instructions for more information on an Authorized Representative. Forms signed by an Authorized Representative without this box marked will be rejected.
9. Taxpayers that sign electronically are required to check the “Signatory confirms document was electronically signed” box. Forms signed with an electronic signature without this box marked will be rejected.

In July 2021, Fannie Mae (FNMA) and Freddie Mac (FHLMC) published a complete library of updated uniform instruments, including both multistate and state-specific notes, security instruments, riders & addenda, and special purpose documents. PPDocs has previously addressed the new uniform instruments in our monthly newsletter. Links to the updated Fannie Mae Legal Documents homepage and Uniform Instruments Update Fact Sheet are included below for your information.

Fannie Mae and Freddie Mac began accepting the new uniform instruments immediately in July 2021 but required that they be used for loans with a note date on or after January 1, 2023. In addition, the new uniform instruments cannot be used in combination with any earlier versions. For example, a security instrument with a July 2021 footer must be used with a note that also has a July 2021 footer.

PPDocs has created the entire library of new FNMA/FHLMC Uniform Instruments, including all new notes, security instruments, riders & addenda, and special purpose documents. To facilitate a smooth transition from the old versions of the uniform instruments to the (soon to be) required new versions, PPDocs will begin filtering the new versions into all applicable loans we document beginning on December 1, 2022.

The information PPDocs has reviewed from various secondary market investors indicates the new uniform instruments are being accepted by investors today, and that the December 1, 2022, date we have selected for our transition will not impact our clients. However, PPDocs does not receive all updates from every secondary market investor. We ask that clients who have information about an investor who WILL NOT accept the new versions of the uniform instruments prior to the January 1, 2023, mandatory date please communicate that information to PPDocs as soon as possible.

We greatly appreciate your continued business. Please feel free to contact PPDocs with any questions you may have about this announcement.

FNMA Legal Documents (New) Homepage: https://singlefamily.fanniemae.com/fannie-mae-legal-documents

FNMA Uniform Instruments Update Fact Sheet: https://singlefamily.fanniemae.com/media/27911/display

As a reminder, PPDocs offices will be closed on Thanksgiving Day, Thursday, November 24, 2022.

In observation of the upcoming Christmas and New Year’s holidays, our office will close at 12:00 on December 26, 2022, and January 2, 2023.

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