Lenders May Never Again Ask You For Pay Stubs, W-2s, Or Bank Statements


Mortgages Enter The 21st Century

Getting approved for a mortgage is about to get a whole lot easier.

In an effort to streamline the application process, mortgage giant Fannie Mae has rolled out a new program that allows lenders to "skip" the collection of most borrower documents.

Instead, lenders will access third-party verification portals electronically for everything from your recent bank statements to your latest pay stub.

Finally, tech is doing the heavy lifting when you get a mortgage.

Why is Fannie Mae Doing This?

Your employer and bank are already storing your income and asset information in a database somewhere.

Asking you for it is becoming redundant and unnecessary.

A lender just needs secure access to the information. Thanks to Fannie Mae, that is becoming a reality.

Fannie Mae now gives lenders access to nationwide databases through Desktop Underwriter (DU)-- the computerized verification system that analyzes a large share of loan applications in the U.S.

In cooperation with mortgage credit and verification company Equifax, lenders can direct-check qualification items with your employer, bank, and even the IRS.

The effort started as a way to minimize mistakes (and even fraud) within mortgage files. Lenders could ensure they were originating "clean" files, which would help them avoid penalties from Fannie Mae later on.

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Tami L Barber

NMLS #1030737

(423) 943-9269

Encore Lending Group LLC

NMLS #1249911

206 Wesley St, Johnson City TN 37601

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The information contained in this site has been prepared by an independent third party and is distributed for educational purposes only. This is designed to give helpful tips on the mortgage process and is not intended to give legal advice. Information is considered reliable but not guaranteed. This is not a prequalification, preapproval, loan approval or commitment to lend.