Ingrid B. Quinn

NMLS ID #211652 Arizona, Loan Consultant

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Tax Time and Staying In Touch

It’s that time of year again, when everyone is gathering their paperwork from 2013 and preparing to file their tax returns. Clients, who have either purchased a home or refinanced a current home mortgage in 2013, need to retain their final closing statement from their transaction for tax purposes.

Their tax preparer or online self preparing system will ask them for information from their settlement/closing statement. Clients will need to keep this paperwork handy to determine the amount of charges in relation to their recent transaction that can be used as a deduction on their taxes.
Tax payers have questions about what is going to be deductible and it’s always good to have them ask their preparer for that information. The website is also very helpful. Also, remind them that they will get a year end summary 1098 from their mortgage company about interest, property taxes and mortgage insurance paid for the tax year. If the loan has been sold to a new servicer, it is also good to remind them that they will receive more than one 1098.

This is a great time for realtors to reconnect with their clients from the previous year. Sending your client a copy of their final HUD (closing statement) is a helpful service you can provide and is one of the activities you can plan on an annual basis when doing your yearly business plan. You can securely retain the final HUDs throughout the year and when January 2015 rolls around, you have them at your fingertips to forward to each client with a thank you and a reminder for referrals.

What else are you doing to stay in touch with your client during the year? I appreciate your feedback. To contact me please, email or visit my website at or

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Self Employed Tax Return Policies for Obtaining a Mortgage


The following information is policy for tax returns required for a loan application during the time of year where current year taxes may have been recently filed and the borrower needs to have the income used for qualification on the mortgage application. 2012 last date to file with an extension is October 19, 2013.


Self Employed Borrowers


If income from the immediate prior year’s tax returns is needed to qualify, and transcripts are not available, the borrowers must have a CPA prepared and signed tax return and verification that the tax return was filed with the IRS. An exception for CPA prepared tax returns can be made if the borrower has a history of not using a CPA to prepare tax returns.


Verification that the tax return was filed with the IRS would include:


A letter from the CPA stating that the CPA personally filed the return and confirm the adjusted gross income figure to match the tax return that has been provided (see Affidavit of Filed Tax Returns).

Copies of tax returns stamped “received” by the local IRS office

For self-prepared tax returns (exception described above): other acceptable evidence that the tax returns have been filed such as evidence of electronic filing that also verifies taxes owned or refund due.


Additional documentation must be provided to verify that any taxes owed have been paid (e.g. copy of canceled check) or refund due has been received (e.g. copy of bank statement verifying deposit) to match the tax returns provided.


Note: If the income has increased by more than 20% over the previous year, transcripts for the current year will be required.


In addition a statement from the borrower(s) acknowledging that they will not subsequently amend the returns to negatively impact the income used to qualify is required


Amended Tax Returns


  • Cobalt Mortgage will not accept amended tax returns filed after the date of application.
  • If amended tax returns have been provided by the borrowers that were filed prior to the date of application, transcripts of those amended returns will be required.


For those loans closing after April 15th IRS transcripts for the most recent 2 years will be required. If an extension has been filed with the IRS by the borrower for the immediate preceding year, the two prior years’ transcripts will be required and our Extension policy must also be followed.

For additional information contact Ingrid Quinn at