[quote=captcha]
I’m not speculating, it is a concrete case.

The guy went to taxpayer advocate and that did not help. The paper return was processed, the check he sent along was deposited, IRS was willing to send stamped processed return, but the lender would not take it.

The broker said they never had that problem before.

The loan was approved and they are closing today.[/quote]

I’m not disputing that you have repeated this anectdote exactly as you heard it. But even if it wasn’t 2nd hand, and you were the borrower, I would still have questions about the details. There may have been other circumstances, maybe the borrower is self-employed, or has some other source of income that necessitated IRS verification. Often there are work-arounds that are left out of the story, intentionally or otherwise.