Maryland Blogger: IRS Mortgage Applicant Program Lacks Security Protections

IRS Mortgage Applicant Program Lacks Security Protections

IRS Mortgage Applicant Program Lacks Security Protections


"Federal auditors say the popular “tax transcript” program run by the Internal Revenue Service and used by millions of mortgage applicants a year lacks adequate security protections against disclosures of tax-return details to people who shouldn’t be allowed to obtain them." - Kenneth R. Harney

"Mortgage borrowers routinely fill out an IRS Form 4506-T, which grants permission for third-party vendors to access their tax records and send them to banks and mortgage companies. Lenders use the service to verify applicants’ income. A key security issue in the mortgage-related portion of the program is whether the third-party “requester” of a transcript has been properly vetted by the IRS and found eligible to receive transcripts." - The Washington Post 

Mortgage applicants need to take great care when completing the IRS Form 4506-T. Line five which contains the name of the third party that will obtain the transcripts should never be left blank. 


Click here to view the full article by Kenneth R. Harney in The Washington Post.


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Roy Kelley and Associates


Roy Kelley, Associate Broker

Realty Group Referrals (Retired from RE/MAX Realty Group)

6 Montgomery Village Ave., Suite 200

Gaithersburg, MD 20879

Main Office:  301-258-7757 (You will not reach me at this number)

Send an email message if you need my phone numbers. I will be happy to recommend a real estate professional if you are moving to the area.

Comment balloon 5 commentsRoy Kelley • April 07 2018 01:29PM


This is very important information, Roy, and should be shared as much as possible with all those applying for a loan.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) 15 days ago

Wow, thanks for the information Roy.  The older I get the more way people can get information on us about anything.


Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 13 days ago

Roy Kelley - This is excellent information to know and scary too! It also makes a stronger case to save and pay cash if possible when buying homes.

Thank you for bringing this to my attention!

Posted by Patricia Feager, Selling Homes Changing Lives (DFW FINE PROPERTIES) 12 days ago

This is an integral part of the short sale procedure and should be carefully mornitored by agents who instruct Sellers to complete them.

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce - Short Sale (Keller Williams 414-525-0563) 3 days ago

Thank you very much for your comments. It is always good to hear from you.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) 2 days ago