DU Validation Services Day 1 Certainty™

Harnessing the power of DU to provide you with Day 1 Certainty™

Fannie Mae’s Desktop Underwriter® (DU) validation service is designed to provide lenders with enhanced loan origination controls, process efficiency, and certainty around borrower income, assets, and employment input into DU. Fannie Mae has an open platform for data vendor participation to provide a range of options for customers. Lenders may participate in the DU validation service through relationships with vendors of their choice that can provide Day 1 Certainty verification reports accepted by Fannie Mae.

Day 1 Certainty® gives lenders freedom from representations and warranties plus greater speed and simplicity, and enables an improved borrower experience. With the DU Validation Service, you can validate loan application data upfront.

How the DU validation service works

When a lender opts in to use the DU validation service, DU uses third-party vendor data to perform calculations and validate information entered by the lender in DU.

With borrower consent, the lender orders an eligible verification report from a DU validation service vendor. The lender reviews the report, addresses any discrepancies with the borrower, enters the information into DU, and submits the loan.

DU obtains a duplicate copy of the report from the vendor and performs its own income and asset calculations to arrive at a value that is compared to DU. DU issues messages advising the lender on whether the income, assets, and/or employment could be validated, as well as the documentation required.

As long as the lender meets all DU validation service requirements and complies with applicable DU messages, the lender receives Day 1 Certainty for validated components.

Benefits of Day 1 Certainty

The lenders receive certainty regarding borrowers' income, assets, and employment information validated by DU. With validation, the lenders receive freedom from representations and warranties with regard to the accuracy of income and/or asset calculation, borrower employment status, and the integrity of the data from the vendor.

More information is available at www.fanniemae.com/duvalidationservice