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Conforming Underwriting Guideline Tax Transcript
Announcement – November 5, 2019

November 5, 2019
Re: Conforming Underwriting Guideline Amendment

We are announcing a revision to our tax transcript requirements for Conforming Mortgage Loans. This update is effective for Conforming Mortgage Loans locked on or after September 24, 2019, and will be included in an upcoming guideline release.

While all closed loan files sent to AIG Correspondent Lending for purchase consideration must contain a signed 4506T; we will accept files without tax transcripts for any of the below scenarios:

  • A loan receives full income validation through Desktop Underwriter (DU) Validation Service.
  • A loan does not receive full income validation through Desktop Underwriter (DU) Validation Service and the following apply:
    • All income information used in the calculation of the Debt-to-Income (DTI) is made up exclusively of wage earner income and is reported on a W-2, and the AUS (or the Fannie Mae Selling Guide) does not require income documentation other than a paystub and W2, or;
    • If the file consists of fixed income, such as social security or VA benefits reported on a 1099 and the AUS does not require income documentation other than evidence of the monthly receipt and 1099.

If a file does not meet the above criteria, or contains secondary income which does require tax returns, the Seller must then request and include the most recent year’s 1040 IRS tax transcript and business tax transcripts (if applicable) corresponding to each year of tax documents in the closed loan file. Transcripts must be obtained by the Seller directly from the IRS or Transcript Vendor.

Please contact Shane Larscheid, Vice President of Sales with specific questions related to this announcement.

Thank you.