Lending, Mortgage, Open Banking
Freddie Mac now accepts 10-day pre-close verification of employment for home loans
Mastercard’s open banking platform (provided by Mastercard’s wholly-owned subsidiary, Finicity) offers pre-close reports that provide just the right data that GSEs need for 10-day verification of employment. Today, Freddie Mac announced the acceptance of our Verification of Employment (VOE) Reports.
In adding the VOE Payroll and Transactions reports to our Mortgage Verification Services (MVS) product, we have enabled lenders to receive only the data GSEs require for the 10-day verification. Lenders can use these reports to view only your borrower’s employment status, rather than refreshing the full reports that contain more data than required for an employment verification. This minimizes the introduction of new income data or other redundant and unnecessary underwriting changes that could delay the loan closing or cause additional work.
The two available reports provide different types of information. The VOE Transactions report contains 120 days of refreshed transactions with dates and description, but no amounts or totals so income is not reassessed. It shows the latest direct deposits in the income streams, to confirm the borrower is still being paid on their regular cadence.
Another option is the VOE Payroll report. This contains only employment status and details—no income or other data—so lenders can see that the individual is still employed according to their payroll provider.
These two reports are part of MVS at no extra charge and are currently available for lenders connecting directly to Mastercard and through Ice Mortgage Technology.
The VOE Transaction and Payroll reports can help lenders improve accuracy and simplify the process of verifying employment within ten days of closing, removing more friction from the loan origination process without increasing risk. With one click, a GSE-accepted VOE report is available in moments, avoiding the lost time and the uncertainty of tracking down verbal verifications from employers.
How can you access these 10-day pre-closing reports?
To pull the VOE reports today, your team will need to code directly to the endpoints or add this functionality through Encompass LOS from Ice Technology. You can find documentation here. To see Mastercard’s Mortgage Verification Services in action, request a demo here.
Want to learn what borrowers want from a digitized mortgage process powered by open banking solutions? Click here.