fannie mae’s day 1 certainty mae’s day 1 certainty revised 4/5/17 while every effort has been...

Fannie Mae’sDay 1 Certainty

Revised 4/5/17

While every effort has been made to ensure the reliability of the webinar content, PRMG’s product profiles and their updates, are the official statements of PRMG and in the event of discrepancies between the information in this webinar and the product profiles, the product profiles will always supersede the information provided here.

Fannie Mae Day 1 Certainty

Disclaimer

Day 1 Certainty Overview


Millennial State of Mind

• Borrowers in today’s market want a:

+ Simple

+ Streamlined

+ Consolidated

+ and Certain approach to residential finance

• The use of technology makes the home finance process easier allowing home buyers to utilize their time more efficiently through:

1. Reduced paperwork

2. Faster turn times between processing and underwriting

3. Accelerated closings


Day 1 Certainty

When using conventional products with Desktop Underwriter (DU approvals), Day 1 Certainty offers optional electronic validation of borrower data for:

• Income

• Assets

• Employment


Available Tools

• To maximize the use of technology we have the ability to electronically verify:

✓ Income

✓ Assets

✓ Credit

✓ Employment

✓ Tax Transcripts

✓ Underwriting

✓ Property Inspection Waivers

✓ Risk Assessments of Appraisals

• Income/Employment validation is completed through The Work Number, Asset validation is completed through AccountChek and all seamlessly interface with DU

Employment

Income

Assets


Steps to Day 1 Certainty


Income and Employment Verification

• Income and Employment verification is completed through The Work Number/Equifax 4506T and immediately validated though Automated Underwriting (AUS)

Income:

✓ Eliminates the need to collect pay stubs, W2s, tax transcripts and other related income documentation

✓ Instant validation also eliminates additional underwriting income calculations which can enhance turn times

Pay Structure Type The Work Number

4506T Transcript

Service

Base Pay √

Bonus √

Overtime √

Commission < 25% √

Commission 25%+ √ √

Social Security √

Retirement (Pension, Annuity)

√

*Self-employed income √

*Sole Proprietorship and Schedule C borrowers

AUS Integrations


4506T Form

• A 4506T for is still required to be signed both at application and funding, but does not have to processed for income that validated through the Work Number

• Borrowers receiving social security, retirement, Schedule C self-employed income or if 25% or greater of their income is from commission tax transcripts are used to validate their income

Pay Structure Type 4506T Transcript Service

Base Pay

Bonus

Overtime

Commission < 25%

Commission 25%+ √

Social Security √

Retirement (Pension, Annuity)

√

*Self-employed income √

*Sole Proprietorship and Schedule C borrowers

DU Findings with The Work Number Verification:

• The Work Number findings are directly in integrated into the DU findings


DU Findings with The Work Number Income Verification:


DU Findings with 4506-T Verification:


DU Findings with Work Number Employment Verification:



Asset Type AccountChek

Checking, Savings √

CD √

Money Market √

Mutual Funds √

Retirement Accounts √

Asset Verification

• Asset Verification is completed through FormFree’s AccountChek

Income:

✓ Eliminates the need to collect bank statements

✓ Instant validation also eliminates additional underwriting income calculations which can enhance turn times

• Large deposits are required to be sourced in accordance with Fannie Mae

• Once asset verification is run, DU will review and provide direction on requirements


Asset Verification

• Direct verification by a third-party asset verification vendor (i.e., use of AccountChek) is only allowed by PRMG on conventional loans.

DU Findings with AccountChek Verification:


DU Findings with AccountChek Verifications:


Lender Responsibilities

• Must ensure compliance with all DU messaging

• Ensure vendor reports match any information the borrower provided or is contained in the loan application

• Must review the borrower’s information and the application provided by the borrower

• Investigate information to determine the appropriate amount of income or assets to be provided on the DU loan application. This includes investigating any conflicting or contradictory information


Day 1 Certainty Recap


• Order reports, review and addresses any discrepancies with the borrower

• Enter information into DU and submit

• DU obtains a duplicate copy of the report from the vendor using loan number or reference number

• DU performs its own income and asset calculations to arrive at a value that is compared to DU

• Employment status can also be validated

• DU returns specific messages related to the loan components that have been submitted for validation• Income is validated on a per-borrower and per-

income type basis• Assets are validated on a loan-level basis.• Employment is validated on a per-borrower and per-

employer basis

• Ability to take advantage of processing and underwriting efficiencies for components that have been validated


Day 1 Certainty

• https://www.fanniemae.com/singlefamily/day-1-certainty

• https://www.fanniemae.com/singlefamily/desktop-underwriter-validation-service

https://www.fanniemae.com/singlefamily/day-1-certainty

https://www.fanniemae.com/singlefamily/desktop-underwriter-validation-service

Day 1 Certainty Wholesale Requirements


Wholesale Requirements -Topics Covered

1. Ordering Verifications

2. Communicating with Your Borrower

3. Ordering DU


Day 1 Certainty for Wholesale

• Wholesale Brokers needing to process Day 1 Certainty are required to complete the Day 1 Certainty Verification Request Form:

➢ The Day 1 Certainty Verification Request form can be accessed at following link:

http://www.prmg.net/day-1-certainty-verification-request/

• Follow steps outlined in Fannie Mae’s Day 1 Certainty Income/Asset Verification Ordering Job Aid, available from Verification Request page:

1. Upload loan to TPO Portal

2. Complete and submit Day 1 Certainty Verification Request form

3. PRMG Registration Team will advise regarding validations

4. Run DU and submit loan

http://www.prmg.net/day-1-certainty-verification-request/


Advanced Lending Technology

• Please set proper expectations with your borrower(s) regarding the use of advanced lending technologies to expedite the completion of their loan application

Communicating To Your Borrower

✓ [Communicate to Borrower]:PRMG utilizes advanced lending technology which assists us in securely capturing both income and asset documentation

✓ [Communicate to Borrower]:The income and asset account information we retrieve on your behalf is only used to support the asset account information you supplied us with on your loan application

✓ [Communicate to Borrower]:Use of these integrations allows us to securely access information as needed keeping your file current without us having to request additional documentation from you

✓ [Communicate to Borrower]: Not all financial institutions subscribe to these advanced lending technologies. For institutions not currently subscribing to these services documentation will be requested from you to complete your loan


AccountChek – How to Talk to Your Borrower

Loan Officer: To ensure you can comfortably afford your monthly payments this loan requires us to analyze of your finances. Do you use online banking?

Borrower: Of course!

Loan Officer: Perfect! AccountChek is the safest and easiest way to share the financial information with us—no statements required. An email inviting you to verify your banking, retirement and investment assets will be sent to you from AccountChek. You can access it directly on your smart phone, or later on any web enabled device. Which method do you prefer?

Borrower: Let's do it now!

Loan Officer: Great. Here's some info about AccountChek that will walk you through the process. It will only take a couple of minutes once you receive the email.

(Give your borrower the one page AccountChek Borrower Overview found on PRMG’s Resource Center)

Borrower: I'll do it at home.

Loan Officer: Just open the email to get started. You don't need any account numbers — just the names of your financial institutions and your login credentials. Here's some information about the process in case you have questions.


Loan Officer: ...and don't worry. We trust AccountChek because it's super secure and doesn't store your passwords or personal info.

Requesting Preliminary Findings DU From TPO Portal:

• After receiving the email from PRMG’s Registration Team confirming the validation report receipt, broker runs DU through PRMG’s TPO Portal

• Review and follow DU Findings, including Day 1 Certainty options (if offered)


Day 1 Certainty PRMG Requirements


PRMG Requirements -Topics Covered

1. Ordering The Work Number – Automated

2. Ordering The Work Number – Researched (Manual)

3. Ordering Rapid Reporting (Tax Transcripts)

4. Ordering AccountChek

5. Loan Officers/Processors - Communicating with Your Borrower

6. Ordering DU

The Work Number - Automated


Work Number Verification - What To Expect

• The Work Number Provides instant results placing the inside the eFolder

Account Activation

Once you are set up with access, you will receive two activation emails. Your message will come from Verifier ID ([email protected])

You will receive two emails

From: VerifierID Sent: (Date, Time)To: (Your name here)Subject: The Work Number(r) Access

Please use the following Username and Password to access The Work Number.

Username: [email protected] (Username is case sensitive) Password: (For security purposes, we will send your Password in a separate email.)

Web Access:Your Username and Password give you access to our website at www.theworknumber.com/go.

PLEASE DO NOT REPLY TO THIS E-MAIL.

If you have questions regarding your membership with The Work Number, please contact [email protected] for assistance.

…..

From: VerifierID Sent: (Date, Time)To: (Your name here)Subject: Account Password -- The Work Number(r)

You are either logging in with a newly created account or recently requested that your password on The Work Number be reset.

Here is your temporary password: ueDyVR1B6LaG

To use your Work Number account:

1. Go to The Work Number web site: www.theworknumber.com/go.2. Click the blue "Log In" button.3. Enter the username you received in the previous email.…..

Thank you for using The Work Number service!

Password EmailUsername Email


mailto:[email protected]

http://www.theworknumber.com/go

mailto:[email protected]

http://www.theworknumber.com/go

Ordering a Verification

• After completing the borrower information section you have two options for ordering a verification:

1. Select the Services link from the top menu bar

2. Order Verifications under the Services tab from the left-hand side navigations

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2


Selecting The Work Number

1. If you have not previously accessed The Work Number enter The Work Number in the Search by Company text field and click go immediately to the right

2. Highlight/select The Work Number and click Add to My List

3. From the My Providers tab click the Submit button

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3


Order Types

• After successfully selecting The Work Number form from the service verifications window The Work Number Popup window will appear

1. Enter your Username and Password combination provided by support

2. Click the Save Login Information checkbox so your login credentials are remembered

3. Select the desired order types from the Order Verification tab

4. Place your order by selecting the Order button at the bottom of the page

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4


Reviewing the Displayed Verification

• When the data is available instantly, the system displays the verification and automatically places it in the Verification placeholder inside the eFolder

• VOE/VOI information will be available in the eFolder under the Verification placeholder. Rename the placeholder to Income: VOE (Written) or you can drag and drop into the Income: VOE (Written) Placeholder.


The Work NumberResearched (Manual) Verifications

Reviewing the Displayed Verification

• In the event you get the following error message do not be alarmed

• This means the employee record you are requesting a verification for is not immediately available and needs to be researched

• You may request that The Work Number completes a manual verification on your behalf through Encompass


Ordering a Researched Verification

• You have two options for ordering a researched verification:

1. Select the Services link from the top menu bar

2. Order Verifications under the Services tab from the left-hand side navigations


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2

Selecting The Work Number

1. If you have not previously accessed The Work Number enter The Work Number in the Search by Company text field and click go button immediately to the right

2. Highlight/select The Work Number and click Add to My List

3. From the My Providers tab click the Submit button

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3


Order Types

• After successfully selecting The Work Number form from the service verifications window The Work Number Popup Report Request will appear

1. Enter your Username and Password combination provided by support

2. Click the Save Login Information checkbox so your login credentials are remembered

3. Select the Order Researched Verification Tab

4. Select Borrower or Co-Borrower

5. The employer name will auto-populate from the employer information on the application

6. If income information is needed, simply check the Income Verification box

7. Upload the required Authorization Form to place the order

8. Click Order to Submit

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The more information provided for the employer, the easier it will be for the verification specialist to correctly identify the employer (use Comments)

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Researched Verification - Checking Status

• Once the order has been placed, you will see the order on the Check Status/View Result tab

1. Click the Check Status button at the bottom of the tab to display the current status of the order

2. Use the Send Authorization or Fax Cover Sheet links to submit another Authorization Form

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Researched Verification - Retrieving

• Once the order has been successfully completed, you will receive a notification by email

1. The results will move to the Attachments section

2. Click on the View Result button to view the verification—It will have the same look as the instant verification displayed earlier

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1


Rapid Reporting (Tax Transcripts)

Rapid Reporting Activation Email

• You will receive an account activation email once your account has been created

1. Click the link to activate your account

2. Please enter and reconfirm your password accompanied by a security question

3. Click Submit

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3

2


Rapid Reporting Activation Email

• You have two options for ordering Rapid Reporting

• Select the Services link from the top menu bar or you can order Verifications under the Services tab from the left-hand side navigations

1. From the services tab select Order Verifications

1


Accessing Rapid Reporting in FT360

• You have two options for ordering Rapid Reporting

• Select the Services link from the top menu bar or you can order Verifications under the Services tab from the left-hand side navigation

1. In the Search by Company Name Type Rapid Reporting

2. Click Go

3. Select Rapid Reporting – IncomeChek

4. Click Add to My List

5. Click Submit from the My Providers Tab

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3 4


Accessing Rapid Reporting – Income Check

• Verify your Login Information has been entered:

1. Account ID

2. Username

3. Password

4. Email

1. In the Income Check Tab select the desired income type

2. Select transcript year(s) and enter each target yearly income

3. Attach the Authorization Form

4. Click Finish

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4


Accessing Rapid Reporting – Corporation Info

• If you selected the form 1065 or 1120, you will be required to provide the following information:

1. EIN Number

2. Corporation Name

3. Address 1

4. Address 2

5. City

6. State

7. Zip

1. Click Finish F

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F


Rapid Reporting – Retrieving the Verification

1. Select the document icon located on the Order Verifications menu item

2. Once the view document is displayed select the view button to see the returned report

3. If no report is available the system displays a status message on the requested report

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2

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Rapid Reporting – IRS Rejection Codes

Rejection Reason Reason Details

IRS Rejection 0 The IRS has not specified the rejection reason for this request

IRS Rejection 1 The IRS has rejected this request based on the taxpayer/entity name found on line 1/2 A

IRS Rejection 2 The IRS has rejected this requested based on the address information found on Line 3 or 4

IRS Rejection 3 The IRS has rejected this request based on the social security or EIN information found on line 1/2 B.

IRS Rejection 4 The IRS has rejected this request based on the years information found on line 9

IRS Rejection 5 The IRS has rejected this request based on the product information and check boxes found on lines 6, 7 and 8

IRS Rejection 6 The IRS has rejected this request based on the signature of the taxpayer on the 4506-T

IRS Rejection 7 The IRS has rejected this request based on the date of the taxpayers signature found on the 4506-T

IRS Rejection 8 The IRS has rejected this request as they have considered the document to be illegible

IRS Rejection 9 The IRS has rejected this document as they are unable to accept altered documents


AccountChek

AccountChek Activation

Once you are set up with access, you will receive two activation emails. Your message will come from AccountChek ([email protected])

You will receive two emails


Password EmailUsername Email

…

Accessing AccountChek:

• Locate the Services tab locate Order Additional Services

1. Click Order Additional Verifications

1



• Access the All Providers and Tab and locate the Search by Company Name Text Box

1. Type AccountChek in the Search by Company Name Text Box

2. Click the Go Button


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• AccountChek will be the only item returning in the list

1. Click on the AccountChek search result

2. Click Add to My List

3. An Additional Services PopUp window box will appear click OK

4. Click Cancel


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3

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• Locate the services tab and locate Order Verifications

1. Click Order Verifications

2. The Verifications window will appear select AccountChek

3. Click Submit

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3


AccountChek Credentials

• First-time users are required to enter their username and password combination

1. Enter your Username & Password combination

2. Click the Remember Me checkbox

3. Click Authorize

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AccountChek Credentials

• Once your AccountChek Username and Password credentials have been successfully authenticated the Order AccountChek VOA fields will be enabled

1. Loan Customer Information can be copied from the borrower summary (PRMG) screen click the appropriate button based on your needs to copy the correct information over

2. To remove undesired accounts click the x button

3. Verify the Customer Bank Account/Accounts information has been entered (to add additional accounts click the account button

4. Click Submit (once completed you will get a message indicating your order has been placed)

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Please Note: Select the desired Account History and Refresh Period


AccountChek Resending Invitation

• In the event your borrower does not receive the AccountChek invitation email the email can be resent or a new email address may be re-established

1. Click the Retrieve Orders tab

2. Locate the order you wish to resend and click the resend button

3. If the borrower wishes to establish a new email address click the close button and re-submit from the Order AccountCheck VOA tab

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AccountChek Borrower Adoption and Consent

• Once an AccountChek invitation has been sent the borrower will receive an email to Get Started

1. Inside the email the borrower will need to click the Get Started button

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Please Note: AccountChek sends the borrower an email with instructions to complete and consent prior to validating assets electronically. Once the borrower consents/agrees email confirmation is provided indicating the verifications are stored in the FT360 eFolder



• Once an AccountChek invitation has been sent the borrower will receive an email to containing directions to Get Started

1. Locate the Get Started button on the email and click the Get Started Button

2. The Borrower will be prompted to enter their email address provided to the lender in addition to the last 4 digits of their social security number

3. Agree to Terms of Service

4. Click Log In

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• After the initial account security check the borrower will have the ability to add accounts

1. Borrower Name

2. Accounts➢ View All (View Logged in accounts)

➢ Add New (requires login credentials of financial institution)

3. Sign Out

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Asset Verification Results

• The borrower asset verification process is completed though AccountChek generating agency acceptable financial statments

1. AccountChek provides a secure method verifying assets for multiple accounts through a single connection session

2. Consecutive statements of account history including large deposits automatically stored in the eFolder

3. AccountChek Reports are placed in the eFolder and Integrated with AUS

Special Note: Not all financial institutions subscribe to the AccountChek service. For institutions not currently subscribing please follow existing asset verification processes and procedures.

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Day 1 Certainty Communicating with Your Borrower


Advanced Lending Technology

• Please set proper expectations with your borrower/s regarding the use of advanced lending technologies to expedite the completion of their loan application

Communicating To Your Borrower

✓ [Communicate to Borrower]:PRMG utilizes advanced lending technology which assists us in securely capturing both income and asset documentation

✓ [Communicate to Borrower]:The income and asset account information we retrieve on your behalf is only used to support the asset account information you supplied us with on your loan application

✓ [Communicate to Borrower]:Use of these integrations allows us to securely access information as needed keeping your file current without us having to request additional documentation from you

✓ [Communicate to Borrower]: Not all financial institutions subscribe to these advanced lending technologies. For institutions not currently subscribing to these services documentation will be requested from you to complete your loan

Loan Officer: To ensure you can comfortably afford your monthly payments this loan requires us to analyze of your finances. Do you use online banking?

Borrower: Of course!

Loan Officer: Perfect. AccountChek is the safest and easiest way to share the financial information with us—no statements required. An email inviting you to verify your banking, retirement and investment assets will be sent to you from AccountChek. You can access it directly on your smart phone, or later on any web enabled device. Which method do you prefer?

Borrower: Let's do it now!

Loan Officer: Great. Here's some info about AccountChek that will walk you through the process. It will only take a couple of minutes once you receive the email.


Borrower: I'll do it at home.

Loan Officer: Just open the email to get started. You don't need any account numbers — just the names of your financial institutions and your login credentials. Here's some information about the process in case you have questions.


Loan Officer: ...and don't worry. We trust AccountChek because it's super secure and doesn't store your passwords or personal info.


AccountChek – How to Talk to Your Borrower

Day 1 Certainty Ordering DU

Requesting Preliminary Findings DU from FT360:

• The Fannie Mae DU for ePASS service seamlessly integrates with Fannie Mae's Desktop Underwriting.

1. On the Services Tab, click the Request Underwriting button

2. On the Underwriting window, Click Fannie Mae DU for ePASS

3. Click Submit


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Ordering DU from FT360:


Ordering DU From FT360:


[email protected]

fannie mae’s day 1 certainty mae’s day 1 certainty revised 4/5/17 while every effort has been...

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