Fannie Mae is doing more to expand its list of Day 1 Certainty report suppliers, naming Blend as the first online point of sale system to supply asset validations.
More could follow. Point of sale system Roostify, for example, is on Fannie's list of prospective report suppliers, and its approval as a supplier of asset verification reports is "coming soon." Three other vendors — BankVOD, LendSnap and Quovo — have the same status. In addition, technology vendors FinLocker, Plaid and PointServ are working on asset validation pilots with Fannie.
While there are more than 40 approved vendors that mortgage lenders can order asset validations through as resellers, there were only two approved suppliers of the data prior to Blend's approval: Finicity and FormFree.
Similarly, while there are more than 20 approved vendors of income and employment validation reports, there are only two approved suppliers of the reports, DataVerify and Equifax.
In addition to adding more vendors that can validate particular data points, Fannie also has been working to enable single-source validations of income, employment and assets at the same time based on bank account information.
If lenders can verify certain pieces of loan data through third-party sources when they sell mortgages to Fannie, the government-sponsored enterprise will provide them with upfront relief on representations and warranties for the information through Day 1 Certainty.
How widely used automated data verifications by lenders will be depends on how willing borrowers are to authorize the release of their data. There have been some high-profile breaches of consumer information in the past year.