Fannie Mae reveals major upgrade to its Day 1 Certainty product

Here are the companies involved in the pilot program

Fannie Mae unveiled new solutions at the Mortgage Bankers Association 2017 Annual Convention and Expo in Denver that will lower costs and shorten the mortgage process.

The new solution will help simplify the mortgage process for lenders and servicers, Fannie Mae explained, saying it will make the housing finance system stronger and safer while meeting customers’ needs by increasing certainty and lowering costs.

To see the list of Day 1 Certainty vendors available to mortgage lenders, as well as other partners, please check here.

As of October 23, that vendor list is, according to Fannie Mae:

This vendor information is provided for informational purposes only. CoreLogicDataVerifyEquifaxFormFreeMeridianLink, Inc.NCS (National Credit-reporting System, Inc.), and SharperLending also post lists of vendors with which they have relationships who are distributors of the eligible verification reports*. Lenders with questions should contact the vendor or their Fannie Mae customer account team. Lenders should also ensure that they order the appropriate verification reports from these participating vendors.

Currently the DU validation service accepts the following eligible reports:

    • AccountChek Asset Report (FormFree)
    • Avantus IRS-Direct Tax Transcripts
    • CoreLogic 4506-T Direct
    • DataVerify 4506-T IRS Tax Transcripts
    • Equifax 4506-T Tax Transcript
    • Equifax Employment and Income Verification (including The Work Number®)
    • Finicity Verification of Assets
    • First American Mortgage Solutions 4506-T Tax Transcripts
    • Informative Research 4506-T Tax Transcripts
    • MeridianLink, Inc. 4506-T Tax Transcript Service
    • NCS (National Credit-reporting System, Inc.) TRV® Transcript Service
    • Partners Credit & Verification Solutions 4506-T Tax Transcripts (IncomeVerify)
    • PointServ 4506-T Tax Transcript
    • SharperLending 4506-T Tax Transcript
    • Taxdoor 4506-T Service from Chronos Solutions
    • Veri-Tax 4506-T Tax Transcripts
    • Verification of Employment (VOE) and Verification of Income (VOI) from DataVerify

    “Fannie Mae was proud to introduce Day 1 Certainty last year and we have worked tirelessly to build on the benefits it provides,” said Timothy Mayopoulos, Fannie Mae president and CEO. “We continue to listen and learn from our many customers who have signed up for one or more of our Day 1 Certainty services, and we are using that feedback to make the mortgage process faster, less expensive and easier for everyone.”

    “We are committed to delivering more innovative solutions that help solve our customers’ most important business challenges and creating a stronger and safer 21st century housing finance system,” Mayopoulos said.

    Fannie Mae introduced its new Single Source Validation, a service that is now on pilot, which allows lenders to validate a borrower’s income, assets and employment through one report using source data rather than multiple paper documents. The company explained this step will amplify savings and make it easier to originate loans.

    Its new Application Programing Interface platform will allow lenders to utilize Fannie Mae’s data and technology solutions to quickly access the full set of Desktop Underwriter Messages data, driving greater efficiency.

    Finally, its new Servicing Marketplace will connect servicers to sellers who are interested in partnering with each other for serving transfers when sellers sell loans to Fannie Mae, giving more transparency in the system while removing cost and friction.

    Here is a complete list of what each new solution offers lenders and servicers:

    Single Source Validation

    • Allows lenders to validate a borrower’s income, assets, and employment with a single report from a single approved vendor that the lender chooses.
    • Uses source data for validation (a borrower’s bank account, including pay stream and direct deposit information).
    • Reduces the number of paper documents borrowers need to provide.
    • Amplifies savings already being realized by lenders who currently use Day 1 Certainty validation services.
    • Currently in pilot with expected rollout to all customers in 2018

    Application Programing Interface

    • Provides lenders with all the information they need from Desktop Underwriter to originate a loan.
    • Allows lenders to access information that they can customize to their needs.
    • Uses industry-standard data formats and protocols so lenders can integrate the Fannie Mae API to their systems quickly and easily.
    • Currently in pilot with expected rollout to all customers in 2018

    Servicing Marketplace

    • Provides sellers greater access to servicers when they sell loans to Fannie Mae and creates more efficiencies in managing co-issue transactions with Fannie Mae.
    • Offers transparent pricing, a standardized process, and standardized data requirements when a loan is sold to Fannie Mae.
    • Improves data quality and simplifies the servicing rights transfer process for sellers and servicers.
    • Available in December 2017

    Companies participating in the pilot program will see the benefits of these programs early. United Wholesale Mortgage announced mortgage brokers doing business with its company will be among the first in the country to use the Single Source Validation.

    “Pushing the broker channel forward through innovative technology and enhanced services is what we’re all about, so Single Source Validation is a big win for our clients,” UWM President and CEO Mat Ishbia said.

    “Fannie Mae does a great job looking for ways to make the loan process better for borrowers,” Ishbia said. “The pilot has seen positive learnings already in the early stages of testing, with borrowers and brokers both seeing an improvement in the speed and ease of closings.”

    But UWM isn’t the only company piloting the new program. Quicken Loans announced it is also participating in the Single Source Validation pilot program with Fannie Mae.

    “Quicken Loans is the pioneer of the online mortgage,” Quicken Loans CEO Jay Farner said. “We have been communicating with our clients remotely and receiving their documents electronically for more than 15 years, always striving to make the process less cumbersome and reduce the stress for our clients.”

    “Now that the entire mortgage process is online with Rocket Mortgage, we continue to drill down into each step of the process, focusing on ways to improve transparency and speed,” Farner said. “Starting today, our clients are able to provide more financial information in less steps, greatly reducing the time they need to commit to their mortgage.”

    Finicity, a provider of real-time financial data aggregation and insights, announced it is launching Finicity Reports, an online platform that allows lenders to order, manage and monitor digital verification reports.

    With this launch, Fincity also announced it will be participating in Fannie Mae’s pilot for Single Source Validation as an asset report provider.

    “At Finicity, we are digitizing lending through direct access to financial account information permissioned by the borrower,” Finicity CEO and Co-founder Steve Smith said. “By leveraging real-time account data directly from the bank, we’re able to provide a comprehensive view of a borrower’s financial status and generate an accurate verification in minutes.”

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