Both agencies aim to ensure borrowers have a reliable and sufficient income to support mortgage payments, thereby minimizing risk for lenders and investors.
By using secure, digital platforms, borrowers can grant permission to lenders to retrieve their employment and income records instantly from payroll providers, financial institutions, or other data repositories.
[3] This system not only speeds up the mortgage approval process but also ensures greater accuracy in the information provided, as it eliminates the potential for errors and fraud associated with manual documentation.
Consumer-permissioned VOIE aligns with the requirements of Fannie Mae[4] and Freddie Mac,[5] ensuring that the data accessed meets the rigorous standards set by these entities.
Additionally, this approach reduces the administrative burden on employers, who no longer need to manually respond to verification requests, and provides a seamless, user-friendly experience for borrowers (e.g.