Fannie Mae has updated its Servicing Guide to allow mortgage servicers to use third-party vendors to verify a borrower’s income and assets — a new avenue the government-sponsored enterprise (GSE) has authorized for implementation immediately.
Per a June 9 announcement, the new flexibility is available to servicers in connection with obtaining either a complete Borrower Response Package or documentation “to reconcile inconsistencies upon verbally verifying the borrower’s assets when determining the borrower’s ability to make a cash contribution.”
In short, servicers may use third-party digital vendors to streamline income and asset verification when evaluating delinquent borrowers for alternatives to foreclosure — a potentially vital development, considering the tide of borrower requests that servicers will have to deal with as loans exit forbearance. According to the latest numbers from the Mortgage Bankers Association, some 2.1 million homeowners remain in forbearance plans, including 2.18% of homeowners carrying Fannie Mae and Freddie Mac loans.
