Rapid Reporting, a national provider of income and identity verification products to the mortgage industry, has added an easy-to-review Taxpayer Summary Report to its flagship IncomeChek income verification product, thereby enabling underwriters to shave hours from the time required to locate and access critical information for income verification. The creation of Rapid Reporting’s Taxpayer Summary Report came in response to recent changes in the Internal Revenue Service’s (IRS) method of reporting borrower income data. Effective October 2006, the IRS started providing IRS tax transcripts in a new format that is much more detailed and complete than previous versions, making the task of locating specific income in the transcripts a more laborious process. In past years, transcripts for a three-year period were eight pages long at the most, but today, that same data is presented in roughly 20 pages of information. With the Taxpayer Summary Report, all of the critical income data included in those transcripts is sorted and presented in a shorter, easy-to-access format for the Rapid Reporting user. Because the Taxpayer Summary Report is customizable and in XML format, users can select the critical data that is most applicable to their business processes and can get all of that information in one streamlined, easy-to-read page. As a result, underwriters can dramatically reduce the time required to track down critical income information. In times of rising mortgage fraud levels, Rapid Reporting has made it simple and cost-effective for mortgage originators to verify income. “The use of IRS form 4506T to obtain tax transcripts has been around for years, but we’ve taken that information and brought it into the 21st century,” says Ray Petta, chief operations officer for Rapid Reporting. “Our Taxpayer Summary Report enables users to parse and move data into formats that cut down on the time an underwriter takes to assimilate financial information. We’ve taken a multi-page document spanning data from multiple years, and combined it into a one-page summary that creates efficiencies and helps business make good decisions faster.” James Beech, CEO of Salt Lake City, Utah-based Direct Mortgage Corporation, explains “Rapid Reporting makes income verification fast and easy. Through automation, we are able to get tax returns plus the XML data from that tax return from Rapid Reporting. We are then able to run this data through our rules-based software, DirectWare™, and can sign off our income underwriting conditions without having any human interaction. We can share this technology with any lender interested in reducing their costs and improving their loan quality.” Rapid Reporting’s customizable Taxpayer Summary Report includes critical data contained in tax return transcripts straight from the IRS, including the Social Security number of the person that prepared the tax return, a line-by-line summary of data submitted by the borrower to the IRS with any adjustments or disqualifications the IRS has made to each entry, listings of expenses deducted, the Social Security number of the self-employed individual, and for business returns, the number of partners in the business. Rapid Reporting also provides the codes and category descriptions set forth by the North American Industry Classification System (NAICS) as reported on the Schedule C for self employed taxpayers. The NAICS codes help to ensure a high level of standardization, comparability and consistency among businesses throughout the United States, Canada and Mexico. For years, Rapid Reporting has paved the way for convenient and cost-effective income and identity verification. Today, the company is the only company that provides IRS data in adaptable XML format. “Rapid Reporting is dedicated to pushing the industry forward,” states Petta. “It has always been our vision to provide financial institutions data necessary to verify income and identity simply and efficiently and now that the IRS has this new format we can make it even easier to process income information. Rapid Reporting’s Taxpayer Summary Report makes the 4506T very useful. It saves processors the time of looking through mass amounts of paper, and makes the jobs of underwriters much easier. We’re very happy to be moving the industry past the slow, paper-intensive world of faxes and putting it into the fast lane.”

<< Back to list