No, the Mortgagee must obtain the Borrower’s signature on the appropriate IRS form to obtain tax returns directly from the IRS for all credit-qualifying Mortgages at the time the final Uniform Residential Loan Application (URLA) is executed. If FHA requires tax returns as required documentation for any type of Effective Income, in lieu of signed individual or business tax returns from the Borrower, the Mortgagee may obtain a signed IRS Form 4506, Request for Copy of Tax Return; IRS Form 4506-C, IVES Request for Transcript of Tax Return; or IRS Form 8821, Tax Information Authorization; and tax transcripts directly from the IRS.
For additional information, see Handbook 4000.1 II.A.4.c.x. or II.A.5.b.x. available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
HQ Policy Determination - COVID-19 guidance