Validate assets, income, and employment with a single source of data
Lenders using Desktop Underwriter® (DU®) can now validate income and employment in addition to assets using a borrower’s asset account information, satisfying Fannie Mae’s documentation requirements for income, employment, and assets using a single source of data.
Increase your validation potential with the DU validation service
Income and employment validation with an asset report is possible for loans with DTI ratios above 45% and validation messaging is provided for all loans regardless of DU recommendation. Additionally, Fannie Mae will offer the ability to extend employment validation pre-closing without impacting income validation.
By using an asset verification report with at least 12-months
of bank account data, lenders may also be able to:
Improve operational efficiency
at point-of-sale, underwriting, and processing to get to “clear to close” faster.
Lower costs
by reducing third-party report expenses and staff time.
In a survey of pilot lenders, 50% saw some level of cost savings over their existing third-party report costs. Customer results may vary.
Achieve Day 1 Certainty®
through relief from representation and warranties when income, employment, and/or asset information is validated, which may increase loan quality and reduce repurchase risk.
Streamline large deposit verification
by reducing documentation requirements.
Enhance the borrower experience
by reducing the documents borrowers have to provide, which could increase the chance that they will close the loan with you.
Increase the number of borrowers
that receive an Approve/Eligible recommendation in DU by assessing eligibility through rent payment identification and a cash flow assessment.
DU will consider positive rent payment history for certain first-time homebuyers who have a credit score, as well as assess a borrower’s cash flow for certain loan case files if no borrower has a credit score, if a 12-month asset report is present.
Ready to opt in and activate?
There are no special approvals required to participate, but lenders must opt in to activate the service.
Why use a 12-month asset report
With the DU validation service, you’re empowered to use the data that best supports your validation needs. Gain further efficiencies by prioritizing use of an asset verification report for income and employment validation, with a waterfall to additional documentation to meet Selling Guide requirements only when necessary.
*12 months of data is required to validate income and employment.
How income and employment validation works using an asset verification report
Get started using asset validation
Is using an asset verification report to validate income and employment the right fit for you? There are no special approvals required to participate, but lenders must opt-in to activate the service.
Step 1: Learn more and ensure you’re prepared by reviewing the Lender Readiness Checklist.
Step 2: Opt in to receive income and employment from an asset report request.
Asset Repository
Lenders delivering loans to Fannie Mae which reference an asset verification report can download and retrieve the report data. Access to this capability is available in Fannie Mae Connect through the Asset Data File Access report only by the entity whose DU Institution ID last submitted the DU casefile.
Lender Considerations
To learn more about Fannie Mae's requirements for lender retention of access to the asset verification report, refer to the Selling Guide. Lenders remain responsible for determining what documentation is needed to meet the lender's obligations under all applicable laws and regulations, including Ability to Repay and the Qualified Mortgage Rule.
Fannie Mae Connect Reports
We offer reports to provide analytical insights to help make the most out of the DU validation service, such as Income & Employment Validation from an Asset Report.
