Lenders must obtain a verbal verification of employment (verbal VOE) for each borrower using employment or self-employment income to qualify. The verbal VOE must be obtained within 10 business days prior to the note date for employment income, and within 120 calendar days prior to the note date for self-employment income. The verbal VOE requirement is intended to help lenders mitigate risk by confirming, as late in the process as possible, that the borrower remains employed as originally disclosed on the loan application. A change in the borrower’s employment status could have a significant impact on that borrower’s capacity to repay the mortgage loan and must be fully reevaluated.
Alternatively, lenders may obtain the verbal VOE after closing, up to the time of loan delivery. If the verbal VOE cannot be obtained prior to delivery, the loan is ineligible for delivery to Fannie Mae.
Note: If the employer confirms the borrower is currently on temporary leave, the lender must consider the borrower “employed.” See B3-3.1-09, Other Sources of Income, for details on temporary leave.
The following table describes verbal VOE requirements:
|Type of Income||Verbal VOE Requirements|
|Hourly, Salary, and Commission Income (Non-Military)||
Note: Because third-party vendor databases are typically updated monthly, the verification must evidence that the information in the vendor's database was no more than 35 days old as of the note date.
When employment is validated by DU, DU includes in its assessment the age of the information in the vendor’s database. The DU message will include a date by which the loan must close. This may differ from the age of data and 10 business day requirements above. Compliance with the DU message satisfies the requirement for completing the verification of employment. See B3-2-02, DU Validation Service for additional information.
If the borrower is in the military, in lieu of a verbal or written VOE, the lender must obtain either
The table below provides references to the Announcements and Release Notes that have been issued that are related to this topic.
|Announcements and Release Notes||Issue Date|
|Announcement SEL-2016–09||December 6, 2016|
|Announcement SEL-2016–05||June 28, 2016|
|Announcement SEL-2013–06||August 20, 2013|
|Announcement SEL-2012–04||May 15, 2012|
|Announcement SEL-2011–13||December 20, 2011|
|Announcement SEL-2010–13||September 20, 2010|
|DU Version 8.2||September 20, 2010|
|Announcement 09–19||June 8, 2009|