Compliance Updates: April 2025 In Review
Nov 12, 2020
The industry saw very little new investor compliance activity in October. Regulator activity was likewise muted, perhaps due to the runup to the presidential election. The only activity from any government agency came from the IRS, who finally published their long-awaited new 4506-C form.
With a lack of new regulations, our compliance experts focused on providing in-depth analysis of recent changes in California and the Social Security Administration’s new eCBSV system. Senior Regulatory Compliance Specialist Timothy A. Raty’s first article is an examination of California’s mortgage disclosure laws that require some mortgage documents to be translated into certain languages from English. Two of the state’s rules deal with the issue, but they differ in approach and apply to different types of mortgage industry participants.
In his second October article, Raty explores the EGRRCPA rules that allow the Social Security Administration to accept the consent of a consumer to verify their Social Security Number, when such consent is submitted electronically. This was a welcome change from the previous “ink-signed” requirement.
Government Compliance News
Only one item made our compliance blog in October and this is from the Internal Revenue service.
IRS. The IRS has provided the industry with a copy of its anticipated Form 4506-C. It is available now on the IRS website. The purpose of this form, according to the government, is to allow Verification Express Service (IVES) Participants to order Tax Transcript records electronically for a third party. The IRS will require the 4506-C to be used exclusively by IVES participants starting March 1, 2021. Learn more.
Document Changes
Our compliance team did deliver a number of document updates in October. The changes have been summarized below with links to the full descriptions of the updates.
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The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.