A change in the technology utilized by the Internal Revenue Service has created a glitch in a system used by home lenders that could end up delaying mortgage closings by months.
The Yves system is used by the mortgage industry to verify that tax returns supplied by an applicant for a residential loan are not fraudulent. A vast majority of the 6 million mortgages processed each year depend on the system due to investor and regulatory requirements.
But mortgage industry vendors are reporting that as of midday Thursday, they have been unable to retrieve tax transcripts from the IRS at the pace needed to handle the daily volume of loans.
Source: Mortgage Daily