Fannie Mae’s Desktop Underwriter validation service is a fundamental component of the Day 1 Certainty program. Here’s what you need to know about selecting and working with a qualified vendor in order to take advantage of it.

Fannie Mae’s Day 1 Certainty™ enables lenders to streamline the way they originate mortgages, helping them grow their business and meet market demands. It provides lenders with fully integrated online tools to validate key data about borrower income and assets, as well as home value.

Not only is Desktop Underwriter® (DU®) the most widely used automated underwriting system in the market today, it’s also the future of the industry. Fannie Mae’s DU validation service is designed to provide lenders with enhanced loan origination controls, process efficiency and certainty around borrower income, assets and employment input into DU.

Lenders who wait to get on board may find themselves quickly outmaneuvered as competitors (and borrower demands) surpass their outmoded capabilities. Invest now in this new process and immediately benefit not just from long-term gains, but also from immediate time savings. Staffers are freed from manual-intensive routines, and loan underwriting can be completed more quickly and confidently which lets you turn those benefits into a better experience for your customers.

Vendors Are Key to Unlocking the Power of Day 1 Certainty
Taking advantage of this opportunity requires lenders to contract with Fannie Mae-authorized Verification Report Vendors, who can automate the review and verification of borrower data. Instead of submitting hard-copy forms, borrowers can permit lenders to obtain electronic data from these Verification Report Vendors to help substantiate the information on their loan application.

Lenders have the option of working with Day 1 Certainty vendors who are report suppliers, or with report distributors who obtain reports from those report suppliers. Lenders can also take an a la carte approach:

  • Employment and Income Verification (including The Work Number)
  • Equifax 4506-T Tax Transcript
  • AccountChek Asset Report (FormFree)
  • DataVerify 4506-T IRS Tax Transcripts

Verification Report Suppliers are one type of DU validation vendor, and are directly integrated with DU. Fannie Mae ensures, with the use of their vendors, seamless, secure and timely information validation.

A second type of verification vendor is the Verification Report Distributor. Distributors are not directly integrated with DU vendors, but obtain reports from the authorized verification report suppliers. This means that lenders may have access to Equifax’s report without having to go directly to Equifax. Lenders gain flexibility in purchasing and accessing eligible reports that otherwise would be available from only one source.

To become a verified DU validation vendor, Fannie Mae requires the vendors be pre-qualified and complete a detailed process ensuring that, among other requirements, they:

  • Provide the technology, tools, security, and platforms necessary for the handling and analysis of electronic data
  • Provide forms and reports in the format required by the Internal Revenue Service
  • Undergo assessments throughout the onboarding and implementation processes
  • Test and meet service level agreements and requirements for security controls, data collection, and validation
  • Engage in on-going monitoring and review

Don't miss out! Take the first step today. Review the Day 1 Certainty implementation process, complete the vendor activation process, and execute vendor contracts. Lastly, submit the DU Validation Service Set-Up Form.