Mortgage

Fannie Mae streamlines asset and employment validation

Uses data from Equifax

Fannie Mae announced Monday it added asset and employment validation to its Day 1 Certainty process.

In October, Fannie Mae announced the changes coming to its desktop underwriter including online verification for income, assets and employment. While the income verification was available immediately, the assets and employment verifications were still “coming soon.”

The company announced that these services would be available starting Dec. 10, 2016. True to its promise, Fannie Mae started offering these services online on Saturday using data from Equifax, a global information solutions provider.

The automation of income and employment verification can help to reduce underwriting cycle times by lessening lenders' reliance on applicant provided W-2s, pay stubs and other documentation, according to Equifax.

“Inclusion of this data in support of the verifications process within Fannie's DU validation service will offer the mortgage industry a way to improve its process and help to mitigate risk,” said Craig Crabtree, Equifax Mortgage Services general manager.

Now, instead of collecting documents such as paystubs, bank statements, and investment account statements, lenders and borrowers can use the digital process. There is lower fraud risk when borrower data is gathered directly from employers and financial institutions.

“Upfront digital validation of key borrower loan components is an important step in our efforts to give lenders the Day 1 Certainty they need to transform the mortgage lending process,” said Andrew Bon Salle, Fannie Mae executive vice president of single-family business. “Along with freedom from representations and warranties, lenders will gain efficiencies and be able to provide a simpler borrower experience.”

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