DU Validation Service Desk Resource

What is the DU validation service?

The Fannie Mae Desktop Underwriter® (DU®) validation service uses third-party reports to independently validate key data and reduces or eliminates the need to collect paper documents to verify income, assets, and employment.

Why use the DU validation service?

Close loans faster

  • Helps you get to a rapid close.
  • Reduce or eliminate the back-and-forth paper chase with the borrower, processor, and/or underwriter.

Better borrower experience

  • Faster pre-approval decision reduces fallout.
  • Possibly secure shorter rate locks.
  • Reduce the amount of documents needed to collect.

Get repeat or new business

Increase referrals – good borrower experiences drive word of mouth referrals.

Cycle time comparison

Traditional retail origination practices

1-15 Days

  • Loan originator / Loan set up

15-30 Days

  • Processing OR underwriting

45+ Days

  • Post-closing QC
  • Sell to FM

DU validation service origination best practices

3-5 Days

  • Loan originator / Run DU validation service

8 Days

  • Processing OR U/W
  • Pre-closing QC

10 Days

  • Post-closing QC sell to FM

Process best practices – from real lenders

First meeting with borrower – set expectations

  • Explain the process and benefits of the DU validation service.
  • Help the borrower become comfortable with the process and ensure they understand that they privately provide their financial institution login information just as they do when logging into their respective bank or other financial organization.
  • Get borrower’s permission to use the DU validation service.
  • Provide link to 1003 if not completed already.
  • Collect borrower authorization and credit information.
  • Understand the types of income and assets the borrower is using. Certain income and assets types cannot be electronically verified; be aware of what those are to collect documents up front if needed.
  • Provide the borrower a secure link to perform VOA and walk through it together if possible.
  • If borrower is uncomfortable with digital process, reference the “value to the borrower” section.
  • Set up follow-up conversation.

Before submitting to DU

  • Check the data in the 1003 mortgage application form for accuracy.
  • Prior to submitting to DU, ensure borrower confirms income and assets source for accuracy in DU, which saves time later.
  • If running VOE, ensure the borrower’s employer name entered into DU matches the employer name on the VOE report.
  • Run Equifax TWN report and review.
  • Submit manual VOI/VOE if no hit with TWN, request tax transcripts if applicable.

After submitting to DU

  • Perform follow-up conversation with the borrower, address 1003 mortgage application form anomalies or questions on income and assets, and re-run DU.
  • Collect any documentation that was not validated digitally.

Other keys to succeed

  • Start the DU validation service process early and don’t upload paper documents with the application if not necessary.
  • Have a separate, faster internal process for DU validation service applications.

Value to the borrower

Why use the DU validation service?

  • An accelerated loan process – the borrower could save processing time.
  • Reduce or eliminate the borrower’s need to collect and send required documentation.
  • Close the borrower’s loan faster because it is a streamlined and more efficient process.
  • A competitive edge in the seller’s market – the DU validation service could help a borrower be more competitive with offers from cash borrowers.

What the borrower needs to do

  • Provide accurate income, employment and asset information on the 1003 mortgage application form.
  • Give permission to use the DU validation service.
  • They will need to securely share some personal login information to grant 1-time digital access to their financial accounts.
    • This process is very secure; it’s similar to online banking and is an alternative to email transfer and storage of sensitive information.
    • This process eliminates or reduces the need to email or upload documents.
  • If something cannot be validated electronically, it will have to be confirmed manually.

Eligible asset types

Asset types Required documentation
Checking / savings Asset verification report
CD Asset verification report
Money market Asset verification report
Stock Asset verification report
Mutual funds Asset verification report
Retirement accounts Asset verification report

Eligible income types*

Income types Required documentation
Base pay Employment and income verification report
Bonus pay Employment and income verification report
Overtime Employment and income verification report
Commission Employment and income verification report
Social Security Tax transcripts
Retirement (pension, annuity) Tax transcripts
Self-Employed income (sole proprietor, Sched C) Tax transcripts

*DU will only validate eligible income types entered into DU by the lender.

Eligible employment types

Employment associated with income types Required documentation
Base pay Employment and income verification report
Bonus Employment and income verification report
Overtime Employment and income verification report
Commission Employment and income verification report


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