B3-3.1-07, Verbal Verification of Employment (08/03/2022)

Requirements:

• The lender must independently obtain a phone number and, if possible, an address for the borrower's employer. This can be accomplished by using a telephone book, the Internet, directory assistance, or by contacting the applicable licensing bureau.

• The lender must contact the employer verbally and confirm the borrower's current employment status within 10 business days prior to the note date.

  Note: If the employer confirms the borrower is currently on temporary leave, the lender must consider the borrower “employed.” See B3-3.1-09, Other Sources of Income, for details on temporary leave.

• The conversation must be documented. It should include the following:

  • name and title of the person who confirmed the employment for the lender,

  • name and title of the person who completed the verification for the employer,

  • date of the call, and

  • the source of the phone number.

Alternative Methods to Verify Employment:

• If the employer will not verbally verify employment, the lender can obtain

  • a written verification (other than an additional paystub) confirming the borrower’s current employment status within the same time frame as the verbal VOE requirements. The written documentation must include the name and title of the person who completed the verification for the employer.

  • an email exchange with the borrower's employer from the employer's work email address within the same time frame as the verbal VOE requirements.

    • The lender must conduct additional due diligence to confirm that the email address for the employer is accurate. Examples of due diligence include, but are not limited to, searches of domain name on employer website (review for match to employer email address), employer directory on the internet, or other professional networking or business profile websites.

    • The email exchange must include borrower's name and employer's name; name, title, and work email address of the individual contacted at the employer; date of contact; and borrower's current employment status.

• If the borrower is a union member who works in an occupation that results in a series of short-term job assignments (such as a skilled construction worker, longshoreman, or stagehand), and the union facilitates the borrower’s placement in each assignment, the lender may obtain the verbal VOE from the union.

• If the employer uses a third-party employment verification vendor, the lender must obtain written verification from the vendor of the borrower’s current employment status within the same time frame as the verbal VOE requirements.

If the borrower is in the military, in lieu of a verbal or written VOE, the lender must obtain either

• a military Leave and Earnings Statement dated within 120 calendar days prior to the note date, or

• a verification of employment through the Defense Manpower Data Center. See  E-1-02, List of Contacts for additional information.

Requirements:

• The lender must verify the existence of the borrower's business within 120 calendar days prior to the note date

  • from a third party, such as a CPA, regulatory agency, or the applicable licensing bureau, if possible; or

  • by verifying a phone listing and address for the borrower's business using a telephone book, the internet, or directory assistance.

• The lender must document the source of the information obtained and the name and title of the lender's employee who obtained the information.