If you’ve ever gone through the process of purchasing a home, refinancing a home, or watched from the sidelines as a friend went through the mortgage loan process, you know how much time and energy it can take to gather necessary documents from different sources (paystubs, proof of residence, identification, W2s, etc.).

It can feel like temporarily taking on a part-time job as your own personal, private investigator for 30 – 60 days (or however long it takes till closing on your mortgage loan).

Then on to scanning, copying, faxing or printing your investigative work! Not appealing.

To make the process more seamless and save time, we are now able to verify borrower data through electronic means using Fannie Mae’s Desktop Underwriter® (DU®) validation service called ‘Day 1 Certainty.’

Here are a few benefits of the Day 1 Certainty system:

• Borrowers can consent to electric data for collecting documents such as paystubs, bank statements, and investment account statements. (Source: Fannie Mae)
• There is a lower fraud risk when borrower data is gathered directly from employers and financial institutions. (Source: PRNewswire)
• Test lenders reported that pre-approval measured in minutes opposed to days, – processors save approximately 90 minutes and underwriters save 20-30 minutes of touch time as they’re able to focus on managing exceptions; 4-7 days saved overall. (Source: Fannie Mae)

Here’s what Andrew Bon Salle, executive vice president of single-family business at Fannie Mae had to say about Day 1 Certainty:

“The great thing about Day 1 Certainty is that it mitigates some long-time lender pain points. We’re enabling a more accurate, simpler digital process. Lenders and borrowers benefit by moving away from the manual processes prevalent in the industry today.” (Source: Housing Wire)

As you can see from the timeline below, there is little work on the borrower’s behalf throughout the gathering and validation process:

 

This process still may not be as quick as buying a car, but the largest purchase most Americans will ever make just got easier!!

Not only will the process be much smoother for home-buyers, but it will also be a more efficient and accurate process early on in the home-buying process for mortgage lenders and real estate agents allowing certainty regarding buyer financial status and history (income, assets, and employment verification).

Day 1 Certainty is a streamlined and digital evolution in the mortgage and real estate industry!

*It’s important to note that Day 1 Certainty processing is only available for conventional loans not non-conforming/government loans such as VA, FHA, and Rural Development. (Check out Q5 on the Frequently Asked Questions page: https://www.fanniemae.com/content/faq/du-validation-faqs.pdf)*

 

P.S. – Are you looking to purchase your first home or refinance a home? What has been your greatest challenge in the home-buying process? Comment below.