IRS Scrambles to Clear ‘Clogged Drain’ Slowing Mortgage Applications

American Banker, Dec. 19, 2017–Brian Collins, Brad Finkelstein (subscription)
Top officials at the Internal Revenue Service met with mortgage industry groups this week to discuss possible fixes to the agency’s verification system, which lenders rely on to process mortgage loans. The IRS made an update to the system on Dec. 8 and “processing delays began almost immediately,” according to the Mortgage Bankers Association, which detailed the issue in an alert to members.