When the IRS simplified tax returns, the result was the inability to use the IRS Tax Return Transcripts as an aide to determine current/ previous home ownership. The higher standard deductions often resulted in a borrower/ occupant not having to file a 'Schedule A' which may reference real estate taxes paid and/ or mortgage interest-indicators of home ownership.
As a result, AHFA will begin requiring the additional document below, effective with reservations made on/after May 1, 2020:
- A lender-supplied Fraud Report (e.g. LoanSafe, FraudGuard) on all occupants 18 years of age and older which should reference prior ownership information
The Step 2 MCC Request for Conditional Commitment Checklist has been updated in Lender Online to reflect this additional requiremen.