Hello fellow Active Rain members...
I'm sorry I haven't completed this series I partnered with Appalachian Technical College (in Jasper, Ga & Woodstock, Ga) last week. It's been an exciting week!
My last post was about incomplete income documents. I wanted to continue on the subject of income. I was going to discuss the Verification of Employment and the weirdest thing happen last week..... Someone emailed me that very question!
I've actually had several questions regarding the Verification of Employment. I asked the last two mortgage professionals to email me a copy of the VOE (with the borrower's personal information blacked out). I wanted to see why the underwriter asked for additional information. I had an idea, but I wanted to be sure.
Here are a few things that will make your Verification of Employment "incomplete":
1. The Borrower's position/title on the 1003 doesn't match the present position on the Verification of Employment (see examples below)- This is a common red flag. Borrower's will sometimes "say" they are the manager, supervisor accountant, etc..., but when Verification of Employment is completed it shows a different title of position.
2. The applicant's date of employment doesn't add up to the Yrs on this job section of the 1003 (see examples below)- It's not uncommon for borrower's to give estimates of how long they have been on a job. If the borrower has given an incorrect amount of time and it doesn't equal to a two year employment history the underwriter will need an updated 1003 and the borrower's previous employer.
Part IV should have the title, signature and phone number of the person who completed the Verification of Employment (see examples below)- All documents sent to the lender are verified. The lender/underwriter/QC department needs a contact name and number to verify the document.
FAX LINES! - Most (I'm saying "most") Verification of Employments are faxed or they are ordered from the work number for everyone. There are times when the employer may require the Verification of Employment to be faxed, but I'm not talking about those times. Your verification of employment should have two fax lines on it, one from the brokers faxing it to the employer and the employer faxing it back (or an email printout if they emailed it back)
I'll end the income part to this series tomorrow with W-2's and Tax Returns.
D. Bass
Mortgage Underwriter & Trainer
If you are in need of mortgage training and you are looking to learn technique and theory than contact Alpha Mortgage Training. Our Courses were written by a team of mortgage underwriters with a combined 58 years of conventional and government experience. Our course will not only help you produce more effective loans, but they will also help you increase your closing ratio.
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