B3-3.1-04, Verbal Verification of Employment (10/07/2026)

A verbal verification of employment (verbal VOE) must be completed for each borrower using employment income, Schedule K-1 <25% ownership, or self-employment income to qualify. This requirement is intended to help the lender mitigate risk by confirming, as late in the process as possible, that the borrower remains employed as disclosed on the loan application. Lenders are responsible for identifying, evaluating, and resolving any employment changes or discrepancies.

This verification may be obtained verbally, in writing, through an employment verification vendor, or by other means acceptable to the lender provided it is reasonable, verifiable, and appropriate for the borrower's employment or income type.

The lender may obtain the verbal VOE after closing, up to the time of loan delivery. If the verbal VOE cannot be obtained prior to delivery, the loan is ineligible for sale to Fannie Mae.

When a borrower qualifies using employment and Schedule K-1 income or self-employment income from the same business, the required verification depends on the percentage of ownership in the business. If the borrower has

• less than 25% ownership in the business, the lender must satisfy the verbal VOE requirements for borrowers using employment-related income.
• greater than or equal to 25% ownership in the business, the lender must satisfy the verbal VOE requirements for borrowers using Schedule K-1 or self-employment income.

When employment is validated by DU, DU assesses the age of the information in the vendor's database. The DU message will include a date by which the loan must close. This may differ from the age of data and timing requirements below.

• Compliance with the DU message satisfies the requirement for completing the verification of employment.
• When employment was initially validated by the DU validation service using an asset verification report, but the loan will not close by the "Close-by Date" stated in the validation message, the lender may retain employment validation by obtaining a supplemental asset report and submitting it to DU.

See B3-2-02, DU Validation ServiceB3-2-02, DU Validation Service for additional information.

For borrowers using employment-related income to qualify, the lender must verify the borrower's employment no more than 10 business days on or before the note date.

The lender may extend the 10-business day timeline in the following cases:

• The lender may obtain the verbal VOE up to 15 business days prior to the note date when they are relying on documentation dated within 15 business days that reflects information from the most recent pay period prior to the date of the documentation.

  Example:

  • Note date: April 25
  • Asset documentation date: April 10
  • Payroll deposit: April 3 (borrower is paid bi-weekly)

  Although the deposit may have occurred more than 15 business days prior to the note date, the asset documentation is dated within 15 business days of the note date and reflects compensation for the most recently completed pay period.

• For military servicemembers, the lender may obtain an LES dated within 120 days of the note date.

Note: If the employer confirms the borrower is currently on temporary leave, the lender must consider the borrower "employed." See B3-3.3-09, Temporary Leave IncomeB3-3.3-09, Temporary Leave Income, for details on temporary leave.

For borrowers using Schedule K-1 <25% ownership or self-employment income to qualify, the lender must complete the verbal VOE no more than 120 calendar days on or before the note date.

When completing the verbal VOE the lender may use the method most appropriate for the borrower's business structure. For borrowers who own or operate a business, the documentation must confirm the existence of the business. In all cases, the verification must support that the borrower continues to operate or engage in the same income earning activity being used to qualify.

Note: When rental income is the only income claimed on Schedule K-1, the lender is not required to obtain a verbal VOE.