Selling Guide Announcement (SEL-2024-02)
Mar. 6, 2024
The Selling Guide has been updated to include changes to expand the DU validation service to allow income and employment validation using and asset verification report.
DU Validation Service
The Desktop Underwriter®(DU®) validation service currently validates income and employment using an Employment and Income Verification Report or a Taxpayer Tax Return Summary Report obtained from an approved third-party vendor. We updated the Selling Guide to provide an additional report option for validating income and employment.
Income and employment can now be validated using an eligible asset verification report as part of the DU validation service. There are no lender eligibility requirements to use this new functionality, but lenders must opt-in to participate.
Lenders must order an asset verification report containing at least 12-months of data from the borrower’s checking and/or savings account(s) from an approved third-party vendor. See the DU Validation Service Verification Report Vendors & Approved Vendor Tools for additional information.
The relief from enforcement of certain representations and warranties that apply to loans with income or employment validated by the DU validation service will apply when income or employment are validated with asset account data and all other conditions of the DU validation service are met.
Click here to access the PDF version of the March 6, 2024 Selling Guide.
Lenders may also contact their Fannie Mae Account Team if they have questions about this Announcement.
Need a previous Selling Guide Announcement? Visit the Selling Policy Archives.