The California Mortgage Bankers Association is working with the Internal Revenue Service to reduce the time it takes to verify the incomes of self-employed borrowers.

When these people apply for loans, they must fill out a form authorizing the lender to get information about them from the IRS. The lender then mails the form to the IRS, which in turn mails back a transcript of the applicant's tax return. This process can take from three to 10 weeks, said David Molumby, who sits on the California association's quality assurance committee.

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