Traditional home loan processes are paper-based and known for slowing things down. For years, lenders and other industry professionals have been asking for help. Is there way to speed up the process and make it easier on the borrower, not to mention the lender?
In response to this market demand from lenders, Fannie Mae (also known as The Federal National Mortgage Association) announced in November 2016 that they would allow lender partners to offer Day 1 Certainty to their borrowers. And while it’s a big help to the average homebuyer, Day 1 Certainty is still a term many industry professionals seem unfamiliar with.
“Right now, we’re working with the approved third-party vendors from Fannie Mae to validate our borrower’s income, employment, and assets up front through Fannie Mae’s automated decision engine, This process includes receiving accurate information from the borrower upfront at loan application to enter into an analytic data engine.
THIS VERIFICATION REFLECTS FANNIE MAE’S PURPOSE IN PROVIDING DAY 1 CERTAINTY TO THE BORROWER. IT OFFERS:
The potential to leverage borrower and property data.
The ability to make key quality control processes more transparent.
The opportunity to apply more advanced analytics to loan prequalification