Using The Service
Use these steps below to learn how to add the Desktop Underwriter® (DU®) validation service to your process.
For detailed information and requirements, see the DU Validation Reference Guide. Login is required.
Help borrowers understand and feel comfortable with the data validation process. Here are some key resources for borrower conversations:
- Explain the DU validation service process and benefits.
During the meeting, set expectations by explaining the DU validation service process to help the borrower understand how it works. For asset verification, describe the digital process that will be used to verify their information and what information or actions they will be required to provide.
For asset verification, describe the digital process that will be used to verify their information and what information or actions they will be required to provide.
Explain the security measures your company and the vendor have in place to protect their data. Describe ways the process acts as an alternative to providing information via paper or email and may eliminate or reduce the need to upload documents.
Not all borrowers will say yes to digital validation of their assets, income and employment. If the borrower does not give permission, you can still collect and verify the documentation manually.
- Identify the borrower's eligible asset, income, and employment types.
DU will only validate eligible types the lender enters into DU.
Certain asset and income types cannot be electronically verified; for types not listed below, collect documents up front.
Eligible asset types
- Checking/savings
- CD
- Money market
- Stock
- Mutual funds
- Retirement accounts
Eligible income and employment types
- Base pay
- Bonus pay
- Overtime
- Commission
- Social Security
- Pension or annuity
- Self-Employed income (sole proprietor, Sched C)
- Ask permission from the borrower to use digital validation to verify their information.
Additional Resources
Talking to Borrowers
How loan officers are explaining the DU validation service to customers.
Help more borrowers qualify
In addition to validating assets, an asset verification report can help you qualify more borrowers. Take a look at additional data that the asset report can leverage in Desktop Underwriter.
Positive rent payment history
Cash flow assessment
While the process for ordering a report from your preferred vendor may vary, you typically will need to walk through the following steps with your borrower to obtain asset validation with the DU validation service.
- Order the asset verification report.
This kicks off the process of digital validation. Offer to walk through the process with the borrower if needed.
- Borrower searches for and finds their financial institution(s).
Ensure the borrower is considering all possible names, including acronyms, for their financial institution. If the borrower is unable to find their financial institution(s), revert to collecting documents to verify assets.
- Borrower authenticates their financial institution(s) and selects account(s).
Remind the borrower to carefully review the institutions and accounts they're selecting. They should only select the account(s) they own/jointly owned that include the assets they would like to use to qualify for the loan.
- The asset verfication report vendor will send you the report(s).
Before you review and submit, complete the income and employment verification steps below if your borrower granted permission for income and employment verification.
Additional Resources
Asset Validation for a Better Borrower Experience
Learn best practices to help engage borrowers.
- Assess the accuracy of the 1003 and the verification reports.
Ensure what's entered in the loan application matches the verification report and that there is no contradictory or conflicting information in the report.
If running employment verification, ensure the borrower's employer name entered into DU matches the employer name on the employment verification report.
Note: For employment validation, the loan must close within the date outlined in the DU message (10 calendar days from the date the report is obtained).
Ask the borrower any additional questions you have and collect any other required information.
- DU assesses the loan application and reports, and then generates the DU Findings report.
Review the Findings report to determine validation status.
Sometimes, a component doesn't validate due to a typo or data entry error. At this point you may choose to re-assess accuracy of the information entered into the 1003 and run DU again to validate.
If assets, income or employment are not validated, proceed with documentation as indicated in the DU Findings report and revert to collecting documents.
- If there are discrepancies identified in the DU Findings report, discuss with the borrower.
Address 1003 mortgage application form anomalies or questions, and resubmit the DU casefile if needed.
- Collect any documentation that was not validated digitally.
Explore our Interactive Workflow
Move through the steps to see how the DU validation service can fit into your process.
Sample Checklist
The step-by-step guide gets you from gathering assets to preclosing a loan.
Need more information?
Contact your account team or call 1-800-2FANNIE (1-800-232-6643)and press option 1 for technology support
