How we verify applicants may be forever changed, thanks to COVID-19. Social distancing and government-issued recommendations have impacted what we do and how we do it. See how we’re adjusting to this new normal.
4506-T Tax Return Verifications – Though these requests were suspended temporarily by the IRS at the onset of the pandemic, the processing of 4506-Ts resumed earlier this summer. So, you can once again confirm a company’s or individual’s income with these tax return reports to help prevent fraud and gain the insights you need to make proper lending decisions. Nevertheless, there are alternative ways to verify income and employment:
- The Work Number® ─ With this solution offered through Equifax Workforce Solutions and the largest collection of payroll records contributed directly by employers, you can get fast, electronic validation of employment information and consumer income, if requested, so you can make informed decisions.
- Manual verifications – Performed by your Credit Plus team for businesses not contained in The Work Number database in just 1-3 days.
- Verification of Assets ─ Check to see if money was deposited into a checking or saving account by an employer
- Re-verification of employment ─ With unemployment dramatically increasing, re-verifying employment before a loan closes is now more crucial than ever as some applicants who had a job when they first applied for a mortgage with you may no longer be employed.
- Property Valuations/Appraisals – Some people don’t want appraisers inside their homes and the industry has responded.
- Automated Valuation Models – AVMs are regaining popularity because they use information like comparable sales, property details, tax assessments and price trends to provide an estimate of a property’s value. Coupled with drive-by appraisals, AVMs are an effective way to determine the value of a property.
Contact your Credit Plus Account Executive for more information about how to navigate mortgage verifications during this challenging time.