cVerifs, Inc. announced today a Retro Employment Verification review service which provides transparency to the underwriting efforts that were performed at the time of origination and assists with managing repurchase risk with a Retro Income Verification.
With the high levels of loan foreclosures and repurchase requests, the mortgage industry has had to perform a considerable number of loan file reviews for underwriting due diligence and validation of information.
The loan-level documentation is being validated to support compliance of the purchase contract or uncover what may have been missing; areas that have rarely been challenged historically in the industry.
Top Income deficiencies cited by the GSEs:
• Documentation insufficient to support income calculation
• Errors with income calculation
When documentation is missing, investors and insurers have a reason to push back loans to originators or rescind the coverage – by requesting them to repurchase loans in default.
The cVerifs retro income verification has become an increasingly important asset for the quality conducting repurchase audits, dealing with loans in default, or for the mortgage insurer conducting forensic file reviews.
Our cVerifs retro income verification, directly addresses market demand for verified employment
& income history to investigate loan repurchases and mortgage insurance rescissions.
This product assists those examining employment and income on a loan file by providing a verification that validates the borrower’s employment status and payroll income information at the time the loan was closed.
cVerifs, Inc. provides mortgage lenders with rapid access to the most current verification of employment (VOE) and verification of income (VOI) databases and information in the mortgage lending industry, as well as now providing historical income verification to more difficult to verify information such as verbal VOE from employers or self-employed verifications for retroactive income verifications needs.
"Our solutions are continually evolving to meet the demands in the lending environment," says Bruce Michael, President of cVerifs, Inc. "With the addition of the retro income verification solution; we continue to address the needs of our lending customer.
Over the last few years, the industry has seen significant underwriting requirement changes by both Fannie Mae and Freddie Mac. cVerifs assists in ensuring accurate and complete documentation.
Loan originators must now meet the following requirements:
• Written verification of employment (VOE) for one year AND a verbal VOE not more than 10 calendar days prior to the Note Date or one year’s W-2, a year-to-date pay stub for at least 30 calendar days and a verbal VOE not more than 10 calendar days prior to the Note Date.
• Seller to obtain a verbal VOE for employed borrower not more than 10 calendar days prior to the Note Date for Standard Accept Documentation.
• Use of the new Form 90, Verbal Verification of Employment, ensuring accurate phone number for the individual contacted, dates of employment, and whether borrower is currently employed for verbal VOE; phone number must be obtained from an independent third-part source.
Bruce Michael also stated, “The VOE requirements have become more stringent as Fannie and Freddie continue to work on improving underwriting quality and mortgage performance, one of the key factors in today's environment , an employer’s phone number must now be officially secured by means other than from the loan applicant, eventually eliminating and avoiding misrepresentations on an application."
The cVerifs VOE solution offers banks, credit unions, and mortgage lenders a turnkey solution to address and remove the challenges of Fannie and Freddie’s rigorous requirements. All lenders nationwide benefit from:
• Verbal employment authentication, within the required 10 days from the note date
• One reference number means borrower and co-borrower applications are managed as a single file
• Forms and features designed to fit the lender’s processes
• Easy order and details tracking
• Guaranteed easy processing to address Fannie and Freddie requirements … and more
Join the lenders that have benefited from cVerifs suite of products and premier customer service, proven reliability, and innovative processes that have provided clients with the resources and service needed to grow their organizations.
cVerifs, Inc. is a leading provider of services and outsourced solutions to assist banks, investors, lenders and servicers in managing needs for third party services which minimize risk as well as staying in compliance with current and future regulations. We provide consistent risk analysis and complete, accurate data capture with our Collaborative products and services.
The management team of cVerifs possesses years of experience in mortgage loan originations, operations, and collateral markets. Their experienced team provides high-quality, cost-effective services reflecting the highest standard of ethics and professionalism.
cVerifs, Inc. has selectively interviewed and staffed the finest Quality Review Analysts in the industry. Each review project will have a dedicated Manager, focused specifically on the individual services and engagement. This approach allows us to meet and exceed each client’s unique expectations. The Analysts each have “best in the business” states Michael knowledge and skill levels to succeed.
For more information about cVerifs visit their web site www.cverifs.com or call 1-800-650-3775