FormFree chosen to provide asset verification for Fannie Mae

"Day 1 Certainty" program will use AccountChek to verify borrower assets

Lost in all the hubbub about Fannie Mae’s big announcement this week that it would be offering lenders protection from buyback risk, provided the lender uses Fannie Mae’s Desktop Underwriter and Collateral Underwriter tools, was just how Fannie Mae intended to provide lenders with that protection.

Part of the Fannie Mae’s “Day 1 Certainty” program stipulated that lenders use Desktop Underwriter for validation of borrowers’ income, assets, and employment.

But how is Fannie Mae going to verify a borrower’s assets? By using AccountChek from FormFree Holdings, as it turns out.

FormFree announced earlier this week that Fannie Mae chose it as the first “designated vendor” for asset verification through Desktop Underwriter.

As part of the Day 1 Certainty program, Fannie Mae will offer “enforcement relief of certain representations and warranties for validated components,” with relief specifically for asset verification that takes effect on Dec. 10.

And that’s where FormFree’s service comes in.

According to details provided by FormFree, AccountChek enables lenders to “easily and securely” analyze a borrower’s asset information to determine ability-to-repay by using direct-source data, eliminating the need for borrowers to collect, copy and submit paper statements.

Now, that service will now be integrated into Desktop Underwriter.

“Today represents the start of a new era in mortgage lending, and FormFree is thrilled to be at the forefront of such an exciting change in our industry,” said Brent Chandler, CEO and founder of FormFree.

“Automated asset verification is an idea whose time has finally come. Every day, we’re reminded of the primacy of protecting borrower data. In addition, regulators have placed intense scrutiny on the processes by which lenders make their underwriting decisions,” Chandler continued.

“The announcement from Fannie Mae moves us one step closer to a fully digital mortgage transaction based entirely on data that is untouched by human hands, injecting both security and objectivity into the approve/deny decision,” Chandler added. “This type of lending environment not only benefits the mortgage industry, but it also creates a better lending experience for the borrower by providing a more streamlined process free of any hint of bias.”

Again, the asset verification portion of the Day 1 Certainty program takes effect on Dec. 10.

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