ABA Wins Extension For New Income Verification Requirements

In response to advocacy by ABA and others, the Internal Revenue Service today said that it would extend an implementation deadline for new requirements for lenders using the Income Verification Express Service to verify loan applicants’ incomes. The IRS released the requirements last week, with an effective date of July 1. While ABA supports standards to strengthen the IVES authentication process and prevent fraud, the association raised concerns that the deadline would not provide lenders enough time to put new policies and procedures in place. The new requirements will now be effective July 15.