Introduction
This topic contains information on verbal verification of employment requirements for all borrowers.
- Verbal Verification of Employment
Verbal Verification of Employment
Lenders must obtain a verbal verification of employment (verbal VOE) for each borrower using employment or self-employment income to qualify. The verbal VOE must be obtained within 10 business days prior to the note date for employment income, and within 120 calendar days prior to the note date for self-employment income. The verbal VOE requirement is intended to help lenders mitigate risk by confirming, as late in the process as possible, that the borrower remains employed as originally disclosed on the loan application. A change in the borrower’s employment status could have a significant impact on that borrower’s capacity to repay the mortgage loan and must be fully reevaluated.
Alternatively, lenders may obtain the verbal VOE after closing, up to the time of loan delivery. If the verbal VOE (or allowable alternative) cannot be obtained prior to delivery, the loan is ineligible for sale to Fannie Mae.
Note: If the employer confirms the borrower is currently on temporary leave, the lender must consider the borrower “employed.” SeeB3-3.1-09, Other Sources of IncomeB3-3.1-09, Other Sources of Income, for details on temporary leave.
The following table describes the requirements for a verbal VOE and allowable alternatives.
Type of Income | Requirements |
---|---|
Hourly, Salary, and Commission Income (Non-Military) | Verbal Verification of Employment:
Alternative Methods to Verify Employment:
|
Military Personnel | If the borrower is in the military, in lieu of a verbal or written VOE, the lender must obtain either
|
Self-Employed Income | Requirements:
|
Recent Related Announcements
The table below provides references to recently issued Announcements that are related to this topic.
Announcements | Issue Date |
---|---|
Announcement SEL-2024-02 | March 06, 2024 |
Announcement SEL-2023-11 | December 13, 2023 |
Announcement SEL-2022-07 | August 03, 2022 |
Announcement SEL-2021-10 | November 03, 2021 |
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