Verbal Verification of Employment for Hourly, Salary, and Commission Income (Non-Military)
Requirements:
- The lender must independently obtain a phone number and, if possible, an address for the borrower's employer. This can be accomplished by using a telephone book, the Internet, directory assistance, or by contacting the applicable licensing bureau.
- The lender must contact the employer verbally and confirm the borrower's current employment status within 10 business days prior to the note date.
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The conversation must be documented. It should include the following:
- name and title of the person who confirmed the employment for the lender,
- name and title of the person who completed the verification for the employer,
- date of the call, and
- the source of the phone number.
Alternative Methods to Verify Employment:
- The lender can obtain a written verification confirming the borrower’s current employment status within 10 business days prior to the note date. The written documentation must include the name and title of the person who completed the verification for the employer.
- The lender can obtain an email exchange with the borrower's employer from the employer's work email address within 10 business days prior to the note date.
- The lender must conduct additional due diligence to confirm that the email address for the employer is accurate. Examples of due diligence include, but are not limited to, searches of domain name on employer website (review for match to employer email address), employer directory on the internet, or other professional networking or business profile websites.
- The email exchange must include borrower's name and employer's name; name, title, and work email address of the individual contacted at the employer; date of contact; and borrower's current employment status.
- Within 15 business days prior to the note date, the borrower can provide the most recent available paystub as of that date that
- meets the requirements in B3-3.1-02, Standards for Employment Documentation,
- reflects information for the most recent expected pay period based on the date it is provided and the borrower's pay cadence, and
- does not include any information indicating the borrower may not be actively employed.
- Bank statements dated no earlier than 15 business days prior to the note date that
- meet the requirements in B3-4.2-01, Verification of Deposits and Assets,
- reflects information for the most recent expected pay period based on the date of the statement and the borrower's pay cadence, and
- does not include any information indicating the borrower may not be actively employed.
- If the borrower is a union member who works in an occupation that results in a series of short-term job assignments (such as a skilled construction worker, longshoreman, or stagehand), and the union facilitates the borrower’s placement in each assignment, the lender may obtain the verbal VOE from the union.
- If the employer uses a third-party employment verification vendor, the lender must obtain written verification from the vendor of the borrower’s current employment status within the same time frame as the verbal VOE requirements.
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.
When employment is initially validated by the DU validation service using an asset verification report, but the loan will not close by the "Close by Date" stated in the validation message, an alternative method of reverifying employment is permitted using a supplemental asset report. See B3-2-02, DU Validation Service for additional information.
For additional information, see B3-3.1-07, Verbal Verification of Employment.