New MISMO Standard Aids in Taxpayer First Act Compliance

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MISMO says its Taxpayer Consent Language has been approved as a new standard, helping to provide a consistent way for the mortgage industry to comply with the new requirements of the Taxpayer First Act, which went into effect at the end of 2019.

The act requires taxpayers to provide consent for the express purpose for which their tax information will be used. The MISMO consent language is widely used across the industry, since it allows lenders to share tax information received from the Internal Revenue Service with other parties involved in a mortgage transaction.

“JPMorgan Chase has implemented the MISMO taxpayer consent language for its retail originations and reviews the loan files it purchases to ensure the MISMO language is included,” says Suzanne Fay Garwood, assistant general counsel at JPMorgan Chase. “The MISMO consent language has been successfully integrated into our mortgage origination process, and we appreciate the leadership role MISMO took on this.”

The mortgage industry has been using this MISMO resource since its rollout in November 2019. The consent language was developed and is used by a range of organizations, including lenders, government-sponsored entities, IRS form 4506-T fulfillment vendors, mortgage insurers and due diligence firms.

In addition to providing consent for the express purpose for which tax information will be used, the MISMO Taxpayer Consent Language provides consent to share tax information with third parties.

PHOTO: Suzanne Fay Garwood

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