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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