The re-verification process will evaluate the validity and the quality of the data provided in the original underwriting decision, as well as protect against fraud and/or misrepresentation.
1. Verifications of Employment and Income
Original documentation of employment and income may be comprised of several factors including:
PPP will re-verify all original methods of income and employment verification. Copies of the original verifications will be sent to the issuers with a request that the original data be confirmed for accuracy. In lieu of written confirmation, oral re-verification may be used (only if properly documented in writing and retained in mortgage file).
If oral confirmation is obtained, the information transcribed to the file will include:
2. Re-verification of Sources of Funds
Original documentation used to verify sources of funds for down payments, closing costs, and prepaid items may be in the form of the following:
PPP will re-verify each of these sources, as applicable. Copies of the original verifications will be sent to the issuers with a request that the original data be confirmed for accuracy. Oral confirmation may be utilized and proper documentation will be maintained.
3. Credit Reports
PPP must obtain either a new Residential Mortgage Credit Report (RMCR) or a three-repository merged in-file credit report for one out of 10 [or 10% of the selected sample] of the manually underwritten mortgage loans selected in the mortgage. Typically, loans approved by the Automated Underwriting System do not require credit re-verification.
Regardless of which type of credit report obtained, the new report will be ordered from a source other than that used in the original transaction. Data from the new report will be compared with that on the original credit report. Any discrepancies will be cited and included in the final assessment of the mortgage.
4. Review Appraisals
A “review” or “field review” appraisal will be completed for review by PPP. The review appraisal will :
NOTE: A field inspection will include a minimum of:
PPP will perform a “desk review” of the original appraisal. For consistency purposes, a Desk Review form will be provided by the client
5. Payment History
All mortgage payment histories, rental payment histories, and other large liabilities not evidenced on the credit report will be re-verified by PPP
6. Mortgage Application
If deemed necessary, a copy of the original, signed mortgage application will be mailed to the borrowers with a request that they:
7. Management Reports on Re-verification
Periodic, regular reports to management will include information concerning re-verification requests that are not being returned in a reasonable amount of time. Follow-up procedures will be developed with each client.