Streamlining Fannie Mae’s 10-Day Pre-Close VOE Requirements with AccountChek

How Informative Research’s AccountChek Enhances Verification Processes for Mortgage Lenders

Fannie Mae’s recent updates to its Desktop Underwriter® (DU®) validation service mark a significant advancement in the mortgage industry’s employment verification approach. As of September 20, 2024, lenders can satisfy the 10-day pre-close Verification of Employment (VOE) requirements using Informative Research’s AccountChek® deposit-based VOE report (DVOE) only for loan case files where employment was initially validated using an AccountChek asset verification report (VOA).

Meeting the 10-Day Pre-Close Requirement

Per Fannie Mae’s Selling Guide, lenders must verify employment within 10 days before closing a loan. The AccountChek DVOE report, which displays deposit transactions without showing other bank data transactions, facilitates this by leveraging direct deposit data from bank accounts. This streamlined process enables lenders to meet pre-close requirements efficiently without needing multiple verification methods, thereby reducing potential delays.

How AccountChek Simplifies the Process

AccountChek is pivotal in these enhancements by allowing lenders to use direct deposit bank data for initial and pre-close employment and income verifications. To streamline the verification process even further, lenders can complete a single AccountChek order to obtain both a VOA report for initial verification and a DVOE report to satisfy the 10-day pre-close verification requirement.

In addition, Fannie Mae’s updates also eliminate the debt-to-income (DTI) limit previously associated with bank data-based income and employment validation, which means more loans can now utilize asset reports for employment verification. Importantly, this enhancement provides findings to lenders regardless of DU recommendation, significantly expanding lenders’ ability to use a single asset report across various loan scenarios. This adjustment dramatically broadens the utility and flexibility of the AccountChek service in meeting diverse lender needs.

With these updates, AccountChek enables lenders to:

• Meet Fannie Mae’s 10-Day Pre-Close VOE Requirement Efficiently: By utilizing direct deposit bank data, lenders can ensure that initial and pre-close verifications are completed smoothly within the required timeframe.
• Reduce Documentation Requirements: Integrating data into a single report minimizes the need for additional documents, helping to reduce potential errors and speeding up the closing process.
• Enhance the Borrower Experience: A more streamlined and less cumbersome verification process contributes to a faster, more efficient loan approval, improving the overall borrower experience.

Why This Matters for Lenders

These enhancements significantly improve the mortgage industry’s digital transformation efforts. By enabling bank data to satisfy the 10-day pre-close VOE requirement, lenders can operate more efficiently, reducing the time and resources typically required to complete these verifications. This shift increases operational efficiency and positions lenders to provide a more seamless and positive experience for their borrowers.

Leveraging a single report for multiple verification stages reduces redundancy, allowing lenders to focus more on delivering quality service and less on managing complex workflows.

Getting Started

The transition is straightforward for lenders ready to take advantage of these new capabilities. Fannie Mae has provided clear guidelines and resources to help lenders integrate these enhancements into their existing processes. By adopting these new tools and leveraging the power of AccountChek, lenders can enhance their efficiency, reduce costs and improve the borrower experience.

To learn more about how these enhancements can benefit your organization and how to get started, visit Fannie Mae’s website or contact us for additional information on leveraging AccountChek for your verification needs.