Move through this interactive workflow to learn how to add the DU® validation service to your process.
Borrower Meeting
Review the loan process and the steps that the borrower can take to streamline their experience by using third-party data validation reports.
Ask permission to pull credit report and remind them to unlock any frozen credit accounts.
Ask the borrower about income type, employment type, and for permission to use digital validation to verify their asset, income, and/or employment information.
Did your borrower give permission?
Permission to digitally verify assets, income, and employment
After the borrower gives permission to digitally access their asset, income, and employment accounts, proceed to use the DU validation service.
Permission to digitally verify assets, income, and employment
If your borrower is not comfortable giving permission to digitally verify assets, income, and employment, you can always collect the documentation manually.
Follow the process below to verify assets.
If your borrower is using different types of asset accounts to qualify for the loan than the types listed below, revert to collecting documents manually.
An asset verification report with 12-months of data can also be used for income and employment validation. Data from a 12-month asset report can also help lenders consider positive rent payment history for first-time homebuyers in their mortgage evaluations and assess cash flow for borrowers without credit scores.
Borrower has any of the following eligible asset types:
Checking or Savings Account
Certificate of Deposit (CD)
Money Market
Stocks
Mutual Funds
Retirement Accounts
Asset Verification Report
Initiate the process to send the borrower a link or email to kick off the digital asset verification process
Borrower searches for their financial institution(s)
Borrower finds their financial institution(s)
Borrower authenticates their financial institution(s) and selects account(s)
Asset verification provider sends asset verification report to lender
Success!
You ordered and received the report.
Before you move on to the
Review & Submit step, complete the
Verify Income & Employment steps
if your borrower granted
permission for digital
income and employment
verification.
Have you ordered the income/employment verification report or tax transcript(s)?
The borrower may not be able to find their financial institution(s). If that's the case, revert to collecting documents to verify assets
The following reports can be used for income and employment validation:
Asset verification report with 12-months of data
Income verification and employment verification reports
Tax transcripts
Choose the report you will be using for income and employment validation. Depending on the type(s) of income your borrower is using, you may need to complete more than one process.
Asset Verification Report
Borrower has any of the following eligible income types:
Wage-related income types
Base Pay
Bonus
Overtime
Commission
Non-wage related income types
Alimony
Child Support
Disability
Pension
Social Security
VA Benefit (Non-Education)
Wage income types are eligible for employment validation. When the employment is supported (and income is able to be calculated), DU will issue a message that employment is validated with a “Close-by Date" reflecting 15 calendar days from the report date.
Order Asset Verification Report with 12 Months of Transactions
Initiate the process to send the borrower a link or email to kick off the digital asset verification process
Borrower searches for their financial institution(s)
Borrower finds their financial institution(s)
Borrower authenticates their financial institution(s) and selects account(s)
Asset verification provider sends asset verification report to lender
Success!
You ordered and received the report. Move on to the Review & Submit step.
If you do not receive income and employment validation from an asset verification report, order an income and employment verification report, or revert to collecting documents.
The borrower may not
be able to find their
their financial
institution(s). If
that's the case,
revert to collecting
documents.
Income & Employment Verification Report
Borrower has any of the following eligible income types:
Wage-related income types
Base Pay
Bonus
Overtime
Commission
Order income verification and employment verification report
Are you able to digitally verify information?
You may not be able to digitally verify income and employment. If you can’t, revert to collecting paper documents.
Income verification and employment verification report provider sends report to lender
Success!
You ordered and received the report.
Before you move on to the
Review & Submit step, complete the
Verify Assets steps
if your borrower granted
permission for digital
income and employment
verification.
Have you ordered the asset verification report?
Tax Transcript
Borrower has any of the following eligible income types:
Non-wage related income types
Alimony
Child Support
Disability
Pension
Self-Employed Income (from a Sole Proprietorship)
Social Security
VA Benefits
Order Tax Transcript
Tax transcript provider sends tax transcript(s) to lender
Success!
You ordered and received the report.
Before you move on to the
Review & Submit step, complete the
Verify Assets steps
if your borrower granted
permission for digital
asset verification.
Have you ordered the asset verification report?
Assess the accuracy of the 1003 and the verification reports. Ensure what's entered in the loan application matches the verification report data, and ensure that there is no contradictory or conflicting information in the report. Ask the borrower any additional questions you have. Collect any other required information.
Enter the report(s) reference ID(s) in DU. Note: If using the ABLN process
with Equifax, DU will request the
report using the Lender
Loan Number captured in DU.
DU assesses the loan application
and reports, and it generates
the DU Findings report.
Review the Findings report to
determine validation status.
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).
Assets validated?
Congratulations! You have validated your borrower's assets! Job well done.
Assets validated?
If assets are not validated, proceed with documentation as indicated in the DU Findings report and revert to collecting documents.
Employment validated?
Nice job! You have successfully validated your borrower’s employment.
Employment validated?
If employment is not validated, refer to the DU Findings report for documentation needed and revert to collecting documents.
Income validated?
Great! You have successfully validated your borrower’s income.
Income validated?
If income is not validated, refer to the DU Findings report for documentation needed and revert to collecting documents.
If assets, employment, or income were validated, continue to Add Report to Casefile.
Add Report to Casefile
Nice job! Make sure you check the DU Findings report and comply with the messages. And remember, documentation may still be required from the borrower for any non-validated components.
Eligible Income Types
Eligible Income and Employment Types
Eligible Income Types
Report
Base Pay
Asset verification report Employment and income verification report
Bonus Pay
Asset verification report Employment and income verification report
Overtime
Asset verification report Employment and income verification report
Commission
Asset verification report Employment and income verification report
Social Security
Asset verification report Tax transcripts
Pension
Tax transcripts
Self-Employment Income (Sole proprietor, Schedule C)
Tax transcripts
Alimony
Asset verification report
Child Support
Asset verification report
Disability
Asset verification report Tax transcripts
VA Benefit (Non-Education)
Asset verification report
DU* will text of the printing and typesetting industry.
Eligible Income and Employment Types
Eligible Income Types
Report
Base Pay
Asset verification report Employment and income verification report
Bonus Pay
Asset verification report Employment and income verification report
Overtime
Asset verification report Employment and income verification report
Commission
Asset verification report Employment and income verification report
Social Security
Asset verification report Tax transcripts
Pension
Tax transcripts
Self-Employment Income (Sole proprietor, Schedule C)
