Applications & Technology

Using The Service

How to optimize your workflow with DU validation 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.

Most borrowers won’t know what Desktop Underwriter® (DU®) validation service is. However, leveraging the DU validation service may require a borrower to provide access to their data through a third-party service provider. One of the most important things you can do is set expectations with your borrower. Use these tips to have a conversation around what they can expect when providing access to their income, employment and asset data.  

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 income and employment types

  • Base pay
  • Bonus pay
  • Overtime
  • Commission
  • Social Security
  • Pension or annuity
  • Alimony
  • Child Support
  • VA Benefits
  • Self-Employed income (sole proprietor, Sched C)


Ask permission from the borrower to use digital validation to verify their information. 

Additional Resources

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.

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.

  1. Order the asset verification report. 
    This kicks off the process of digital validation. Offer to walk through the process with the borrower if needed.
  1. 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.
  1. 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 accounts to which regular income is deposited, and, for renters, the accounts from which they make rent payments.
  2. The asset verfication report vendor will send you the report(s). 

If you do not receive income and employment form an asset report, follow the next steps to get income and employment validation.


Additional Resources

If you do not receive income and employment validation from an asset report, there are other options. Depending on the type of income your borrower has, you may need to utilize different report types.

If you don't see your borrower's income type listed, revert to collecting paper documents.

Before you review and submit, complete the asset verification steps above if your borrower granted permission for digital asset verification. 

Additional Resources


  1. 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.

    If using an asset verification report, confirm that the borrower(s) are listed as the owners of the account(s) on the 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.



  1. 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.
  1. 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.
  1. Collect any documentation that was not validated digitally.

Quality Control

Improve pre-funding and post-closing quality control activities.

Quality Control

Need more information?

Contact your account team or call 1-800-2FANNIE (1-800-232-6643)and press option 1 for technology support

Visit DU Validation Service