New Taxpayer Consent Language issued by MISMO, the mortgage industry’s standards organization, permits lenders to share tax information received from the Internal Revenue Service (IRS) with other parties involved in a mortgage transaction, the Mortgage Bankers Association (MBA) announced.
MISMO created its Taxpayer Consent Language to help the mortgage industry consistently comply with the Taxpayer First Act, which passed July 1, and goes into effect Dec. 28. The new law stipulates that a taxpayers’ tax information can only be shared with their consent for the express purpose for which it is to be used. Such consent also is required for taxpayer tax information to be shared with other parties.
MISMO sought industry collaboration to draft consent language in August, which then was released for a 30-day public comment period that ended Oct. 20.
“The MISMO community should be commended for coming together to develop useful and clear consent language to ensure compliance with the new law,” JPMorgan Chase Assistant General Counsel Suzanne Garwood said in a press release. “The collaboration throughout the process, including the feedback received during the 30-day comment period, was instrumental in ensuring that model language was finalized ahead of the law’s Dec. 28 implementation date.”
The Taxpayer Consent Language is issued as a Candidate Recommendation, which means the standard has been thoroughly reviewed by a wide range of organizations and industry participants, according to the release. It is now available for broad use across the entire residential mortgage industry free of charge.
“Mortgage lenders need to be aware of this new law and take steps now to ensure compliance,” MISMO Executive Vice President and MBA Vice President of Technology Rich Hill said. “We expect widespread industry adoption of this consent language, and are appreciative of the tremendous teamwork that went behind this effort.”
The organization plans to release written guidance to help industry participants utilize the model language at a later date. Comments or questions about the Taxpayer Consent Language can be emailed to MISMO at [email protected].