33. How should a CDFI verify the income or assets of a mortgage borrower?

Question PM19.6 asks whether an Applicant verifies the income or assets of the borrower of a covered mortgage loan product. For purposes of CDFI Certification eligibility, an Applicant that offers covered mortgage loan products must verify the borrower’s income or assets using third-party records that provide reasonably reliable evidence of the borrower's income or assets. The Applicant may verify the consumer's income using a tax-return transcript issued by the Internal Revenue Service (IRS). As described in 12 CFR 1026.43(c)(4), examples of other records the Applicant may use to verify the consumer’s income or assets include, but are not limited to:

• Copies of tax returns the consumer filed with the IRS or a State taxing authority;
• IRS Form W-2s or similar IRS forms used for reporting wages or tax withholding;
• Payroll statements, including military Leave and Earnings Statements;
• Financial institution records;
• Records from the consumer's employer or a third party that obtained information from the employer;
• Records from a Federal, State, or local government agency stating the consumer's income from benefits or entitlements;
• Receipts from the consumer's use of check cashing services; and
• Receipts from the consumer's use of a funds transfer service.