As part of the IRS shutdown, the processing of tax transcript requests is limited to those tied to disaster relief. There is no processing of nondisaster relief transcripts—in other words, those that lenders depend on for mortgage, student loans and other borrowing. Lenders depend on IRS transcripts to ensure that the income that the borrower has disclosed matches up with what is reported to the IRS. In addition to confirming any mortgages and like, this means that any federal tax liens that show up on a title report must be addressed. It’s not just the shutdown at IRS that’s causing mortgage and settlement headaches.

Source: Forbes January 02, 2019 18:56 UTC