ATHENS, Ga., June 1, 2022 /PRNewswire/ — FormFree® announced today that its AccountChek® Digital Asset Verification Service Supports New Enhancement to Freddie Mac’s Lending Product Advisor® (PLASM) asset and income modeling (AIM) solution that makes assessing borrowers’ employment easier, faster, less expensive and more fraud-resistant.
Under the requirements of the Freddie Mac Single-Family Seller/Servicer Guide, with some exceptions, mortgage lenders must verify each borrower’s employment upon initial loan application and then again within 10 days of the loan date. closing of the loan. The verification, performed before closing, is officially known as the 10-day pre-closing verification or “10-day VCP”.
To meet Freddie Mac’s 10-day PCV requirement, lenders have historically had to provide a verbal, email, or written verification of employment (VOE) or pay a third-party service provider for an electronic VOE report. Now, with AIM’s latest enhancement, lenders can automatically meet the 10-day PCV requirement using account or payroll data using FormFree’s AccountChek.
10-Day PCV Automation Using Account Data is available to all Freddie Mac customers starting at June 1. Freddie Mac describes the service as “an improved way to assess borrowers’ employment” that offers superior speed, cost and fraud resistance over alternatives.
“Verifying a loan applicant’s employment in the run-up to loan closing protects lenders, investors, and borrowers. But the process can be time-consuming and expensive, and it only gets worse with so many Americans working remotely,” said FormFree Chief Customer Officer Christy Moss. “The job number is expensive. Manual employment verification is time consuming. Using direct source asset data to fill out the 10-day VCP is a cost-effective and efficient solution, and it couldn’t happen at a better time for an industry that is losing sleep over very thin margins.”
AccountChek streamlines the mortgage process by allowing borrowers to electronically share their asset and payroll data in a user-friendly format that lenders can use to assess assets, income and employment in seconds. By taking advantage of a refresh period applicable to businesses, lenders who use AccountChek for the initial verification of a loan applicant’s employment will be able to generate the VOE report within 10 days of closing. For more information, visit https://formfree.com/pre-closing-verification.
As the industry’s go-to provider for direct-source VOA and VOI/E data, FormFree helps lenders understand credit risk like never before. Our patented AccountChek® and Passport® open the door to a more inclusive credit decision by revealing each customer’s true ability to pay (ATP®). We have completed over $3 trillion in loan verifications that help lenders reduce operating costs while improving the borrower experience. For more information, visit https://www.formfree.com/ Where follow FormFree on LinkedIn.
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