Talking About the DU Validation Service
Most borrowers won’t know what Desktop Underwriter® (DU®) validation service is, or why they would even want it. 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 data.
A few mortgage lender tips:
Highlight the benefits of providing access to their income, employment, and asset data – faster close, more efficient, and a simpler mortgage experience.
Alleviate concerns regarding sharing their personal information – it’s a similar process to online banking!
Walk the borrower through the process so they are familiar with how it works.
Help the borrower understand which accounts they should provide access to. For example, for asset validation they should provide access to accounts where funds for closing are saved, for income validation provide access to accounts where income is deposited, and for renters provide access to accounts from which rent is paid.
Borrowers must consent to allow you to take advantage of digitally verifying consistent rent payments.
You must verify borrowers’ history of rent payments through information in their bank account statements. You can verify this history automatically without borrowers needing to provide paperwork.
When completing a loan application, borrowers should provide the rent amount paid each month.
You must verify that borrowers have made recurring rent payments for the past 12 months. This applies to rent payments made by check or electronically via any digital payment platform like Venmo, PayPal, or Zelle as long as it appears in the payment history of the borrower’s bank statement.
FAQs
Sourced from real mortgage lenders who have integrated DU validation service into their processes, find answers to questions your lending team and borrowers will ask you.
View FAQs for DU validation service
View FAQs for validating income and employment with an asset report
Interactive Loan Officer Workflow
Explore this interactive workflow sample to see how the DU validation service can fit into your existing process.
