Why are we temporarily suspending representation and warranty relief for employment validation?
The COVID-19 pandemic has caused job loss, income reduction, and other issues impacting businesses and borrowers. This change along with the other temporary changes to the DU validation service announced in the DU Release Notes on Apr. 9, including age of documentation requirements and use of market-based assets, are part of broader measures put into place to continue to provide sustainable homeownership opportunities while managing risk prudently.
For more information, refer to the published Lender Letter LL-2020-03, Impact of COVID-19 on Originations.