RE:Refinancing with cashout

[Anonymous]

I'm refinancing my existing loan and getting cash out to pay off some debt. My interest rate is good and my payment will not be any higher and will free up about $1000 a month. My question is (I'm refinancing with current mortgage holder, big conseravtive bank, and they are asking for signature to have the ability to audit my tax returns for the last 3 years. I do not have a problem with my taxes so not worried about that but never was required with original loan to do this. My husband and I both fille 1099 so thought that had something to do with it. I questioned the loan officer and this is his direct quote"It is to check out underwritting systems.. Lets the purchaser of the loan check to make sure that we documented you the borrower correctly"

Does that sound correct to anyone familiar with underrwriting of loans in today's market.

[ShanetheMortgageMan]

4506t form is what the lender is asking you to sign, it gives them authorization to review (not audit) your tax returns that have been filed with the IRS.  This is to make sure that you are not providing falsified tax returns to qualify.  It happens on most loans in the past, and in the future it'll be standard to verify them during the loan process (vs. before they normally verified afterwards, if at all).