June 14, 2012
Verbal Verification of Employment
United Guaranty currently defers to the Agencies' (Fannie Mae and Freddie Mac) requirement listed below for obtaining a verbal verification of employment (verbal VOE) during the mortgage application process. Prior to a recent announcement by Fannie Mae, the requirement was the same for both Fannie Mae and Freddie Mac. Because United Guaranty's Underwriting Requirements Guides (Guides) are designed to provide only our requirements that are different than the Agencies', the verbal VOE requirement is not currently listed in the Guides.
Current Verbal VOE Requirement:
- The verbal VOE must be obtained within 10 business days prior to the note date for employment income, and within 30 calendar days prior to the note date for self-employment income.
Fannie Mae's recent announcement (SEL 2012-04) indicates that in addition to the time frame stated above, lenders may alternatively obtain the verbal VOE after closing, up to the time of loan delivery. Due to the risk this presents to United Guaranty, we will not defer to Fannie Mae's allowance for the verbal VOE to be obtained after loan closing, and therefore our current requirement listed above will continue to apply.
Because we will no longer defer to both Agencies, we will add the verbal VOE requirement to all Guides at the next revision. We do not consider this a change, as our requirement will remain the same.
See United Guaranty's Performance Premium Underwriting Requirements Guide for more information about our requirements.