Lenders can speed up loan approvals by days and protect themselves from representations and warranties claims by partnering with Truework to verify borrower income and employment using Fannie Mae’s Desktop Underwriter validation service.

That’s according to San Francisco-based Truework, one of a handful of vendors that’s a Fannie Mae-authorized income and employment validation report supplier.

Ryan Sandler

“Receiving approval as an authorized report supplier for Fannie Mae’s DU validation service solidifies our commitment to better serve the mortgage industry and help consumers across the country close home loans faster,” Truework cofounder and CEO Ryan Sandler said in a statement.

Fannie Mae says its DU validation service can “transform your company’s workflow,” by using third-party vendor data to validate income, asset and employment information entered by the lender in DU.

The validation service provides borrowers with a streamlined experience — eliminating the need for an IRS Form 4506-T, for example. In addition, Fannie Mae grants lenders “Day 1 Certainty” they won’t face representations and warranties claims over the accuracy of borrower income, asset, or employment status.

“Day 1 Certainty is incredibly important to customers and we’re excited to see the impact this new offering will have on lenders and borrowers alike,” Sandler said.

Other vendors currently authorized by Fannie Mae as income and employment validation report suppliers are Blend, Equifax Mortgage Solutions, and Finicity.

Blend, which today announced the launch of instant income verification for mortgages, is an authorized report supplier for both Fannie Mae’s DU validation service and Freddie Mac’s asset and income modeler (AIM).

Truework claims to be the first Fannie Mae authorized report supplier to verify income and employment data from third-party providers, and one of the first to offer automated income and employment verification reports.

Truework’s “instant verification network” connects to payroll providers including Gusto, Zenefits, Paylocity, UKG, and BambooHR, enabling it to verify the income and employment data of more than 35 million U.S. employees.

That means Truework’s partnership with Fannie Mae effectively “expands the pool of borrowers whose records may now be eligible for Day 1 Certainty when mortgage lenders use Truework to process employment and income verifications,” the company said.

Chuck Walker

“By adding more options to automate the verification of income and employment through the Desktop Underwriter validation service, we’re enabling a faster, more efficient loan origination process that creates a better experience for borrowers,” said Chuck Walker, vice president digital alliances and distribution, in a statement.

Truework claims lenders can also cut loan cycle time by up to 12 days from application to close, based on the typical 40- to 45-day process for many lenders who aren’t using the DU validation service.

Truework, which announced an integration with ICE Mortgage Technology’s Encompass loan origination platform in June, employs a “waterfall approach” to obtain income and employment data.

If Truework can’t verify a borrower’s income and employment through its instant network, the company’s Credentials process can retrieve information for gig workers and other 1099 employees who share employment and income information directly from their payroll provider. If neither of those approaches work, Truework employs an outreach team that processes manual verifications.

Editor’s note: This story has been updated to note Blend’s launch of instant income verification for mortgages. 

Email Matt Carter

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Hear from Realogy, Pacaso, SERHANT., Spotify, Redfin, Douglas Elliman, and 100+ more leaders at ICNY.Register now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription