can a lender process my loan and without verifying my w2 since the IRS is non responsive or is this a legal issue

Bay Equity has temporarily suspended the requirement for tax transcripts during the shut down on most programs, although you will still need to sign the 4506-T form. This includes processing to funding. Please let me know if I can help in any way.Cindy MacDonell

Depends on the lender and how strong the other documentation available to support your application is. We've developed an internal work-around but it does vary from lender to lender and the details of your application. I don't handle loans in CA but we do have offices there, I'd be pleased to help locate someone who can work with you.

I am not aware of any Lender that will fund a loan without verifying you transcripts with the IRS. That being said I think they can process the loan all the way through but will not fund without the transcripts verified.

This is highly unlikely unless it is a type of refinance that doesn't require any income verification.

A lender will do a verification of employment with your current or past employer(s) to verify current and past earnings (W-2 earnings). A lender will also verify the income through obtaining a copy of your tax transcript. At application you signed a form that allows your lender to obtain a copy of your tax transcript with the IRS. Since the IRS is shut down they are not processing these documents. However, most lenders will allow the loan to close as long as they have this signed form in the file to process at a later date. Ask your lender what there current policy is. There is no legal requirement, as I understand it, that requires the execution of this document. It is only a policy guideline.

MOST (BUT NOT ALL) lenders are waiving the verification of your W2 requirement during the shutdown. Most lenders are requesting your SIGNED 2011 and 2012 Federal tax returns in place of the IRS verification.

under normal circumstances, the lender will always verify your taxes via IRS 4506T, however with the temporary shutdown, lenders are waiving this requirement so long as they have your complete tax returns.. once the government is back up and running, they will verify the transcripts then.. so long as they match, you should not have a problem.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Check with your local lender- they may let you begin the process and reviewyou income, assets, etc.... then prior to closing, pull and verify your income throughthe 4506 document that you sign

the lender normally requires yoyr tax transcripts to verify your income reported to the IRS, however we can process your loan and waive the tax transcripts requirement as long as the IRS is on shutdown.Ernesto Marezemarez@thefederalsavingsbank.com301.535.2912