DU Validation Service: A Smarter Way to Focus Your Quality Control Efforts
Your quality control (QC) team is under constant pressure to do more with limited resources — reviewing enough loans to manage risk while giving the right loans the attention they deserve. Our Desktop Underwriter® (DU®) validation service helps your organization take lower-risk validation work off your QC team’s plate so it can focus on higher-risk, more complex loans. By validating borrower income, employment, and asset information through authorized digital verification reports, DU validation can reduce manual review, limit paper documentation, and provide representation and warranty relief on eligible validated components.
Our DU validation can help support a risk-based quality control strategy.
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Confidence where you need it
Not every loan presents the same level of repurchase risk.
Loans with straightforward employment, consistent income, and simple assets are excellent candidates for validation. When those components are successfully validated through DU validation service, you gain greater confidence that the information submitted to DU matches third-party data.
Eligible income and asset information obtained through approved automated digital data sources does not require reverification, and your QC reviewers are not required to recalculate or reverify those validated components, which can reduce both the cost and effort associated with the QC review. Those efficiencies allow you to redirect resources toward loans and loan components where additional review and human judgment can have the greatest impact.
Let complexity drive the review
Focusing prefunding and post-closing reviews on loans with higher risk characteristics, like complex income structures, self-employed borrowers etc., allows you to direct resources to files where additional review may have the most impact.
Used strategically, DU validation service can do more than improve efficiency—it can serve as another input into your organization’s overall risk-based QC strategy.
Measuring opportunities for improvement
Incorporating the DU validation service into workflows can create greater certainty that loans meet investor requirements and help minimize repurchase exposure.
Use the DU Validation Service Insights Report in Fannie Mae Connect™ to identify where validation is working well and where adoption may be falling short. The report includes validation rates, participating vendor information, and common reasons validations were not obtained.
Data that benefits everyone
When you use digital data and automated processes wherever possible, borrowers often benefit from a simpler experience with fewer documents to collect and submit. At the same time, your organization gains additional confidence in the quality of the loan data and can better target QC efforts.
QC will always require experienced professionals making informed decisions. But as more reliable digital data becomes available, your QC teams can
spend less time confirming routine information and more time evaluating the loans that truly warrant deeper review.
Ask Yourself:
- If your organization does not regularly use DU validation service, have key decision-makers considered the QC-related benefits in addition to the operational and financial benefits?
- Have you analyzed your QC results to determine whether DU validation service could have prevented significant defects?
- Are you monitoring trends in validation rates to identify operational or training opportunities?
- Your organization still has a responsibility to perform quality control or resolve contradictory information.
