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Why are copies of tax returns from the past three years required when applying for a bond program?

April 26, 2017Bond copies past three years program tax returns

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Why are copies of tax returns from the past three years required when applying for a bond program?

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The federal tax code that authorizes Tax-Exempt Bond Programs prescribes that borrowers must submit copies of their tax returns so that the Compliance Agent can verify that no deduction has been taken for mortgage interest in the past three years. CitiMortgage, Inc., when acting as Compliance Agent for a bond program, must perform this review of the borrowers tax returns and verify that they have not treated mortgage interest as a deduction.