Fannie Mae Suspends Employment Validation Through DU
In a DU Validation Servicing Release Note dated May 1, 2020, Fannie Mae announced the temporary suspension of employment validation within the Desktop Underwriter® (DU®) validation service “in response to COVID-19’s unprecedented impact on employment.” The temporary suspension applies to all new casefiles created in DU on or after May 4, 2020. Lenders will have to perform a verbal verification of employment in accordance with Selling Guide B3-3.1-07, and follow the temporary policies for employment verification outlined in Lender Letter 2020-03.
Fannie Mae advises that lenders still will be able to use the income and asset validation services, but that income validation for a borrower remains dependent on the borrower being employed. Fannie Mae also states that it will continue to monitor the economic environment closely, and at the appropriate time it will communicate the reinstatement of the employment validation service.
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