To help lenders comply with the Taxpayer First Act—a new law taking effect Dec. 28 that requires that taxpayers provide express consent for how their tax information will be used and additional consent for it to be shared with other parties—MISMO, the mortgage industry’s standards setting organization, has released new taxpayer consent language that can be used as part of the mortgage transaction.
Lenders are encouraged to use the model language to obtain borrow consent to share tax information received from the IRS with other parties involved in the mortgage transaction. The language has been thoroughly reviewed by a wide range of industry stakeholders, and lenders are not required to pay a licensing fee to use it.
ABA strongly encourages banks to consult with legal counsel to understand their obligations under the Taxpayer First Act.
