Equifax Providing Verification Services for Fannie Mae's DU

Equifax Workforce Solutions has been selected as a designated vendor for Fannie Mae's Desktop Underwriter validation service.

The DU Validation Service is a component of Fannie's Day 1 Certainty initiative.

Users will receive automated employment and income data from The Work Number as well as manual employment and income verification services when needed plus IRS tax transcript fulfilment services.

The move towards automation of income and employment verification will help to limit underwriting cycle times by reducing lenders' reliance on applicant-provided W-2s, pay stubs and other income-related documentation, Equifax said in a press release.

The income validation service is live as of Oct. 24, while the employment validation service is set to go live in December.

It also announced an alliance with FormFree for the latter company to provide asset verification concurrently with Equifax employment and income checks.

The companies are working on development of integration points for lenders to access the information. It is expected that Equifax will enable lenders to order this data through a web-based platform.

FormFree is also a designated vendor for the DU Validation Service, through its AccountChek asset verification product.

"Automated asset verification is an idea whose time has finally come. Every day, we're reminded of the primacy of protecting borrower data. In addition, regulators have placed intense scrutiny on the processes by which lenders make their underwriting decisions," said FormFree CEO Brent Chandler.

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