DU Validation Service Vendor Reference Guide

Updated on July 6, 2022

An overview of the Desktop Underwriter® (DU®) validation service and the requirements and criteria necessary to become and remain an authorized report supplier (“vendor”).

Overview of the DU Validation Service and Vendor Workflow

Desktop Underwriter offers the DU validation service which uses third-party vendor data to validate information entered by a lender in DU.

The DU validation service:
  • Enables lenders to process loans faster and reduce the cycle time from application to close.
  • Provides borrowers with a streamlined, efficient process that reduces paperwork.
  • Gives lenders certainty regarding income, assets, and employment information validated by DU. With validation, lenders receive relief from representations and warranties with regard to the accuracy of income and/or assets reported by the borrower, borrower employment status, and the integrity of the data from the vendor.

How the DU Validation Service Works

Vendor Workflow

Vendor Workflow

To participate as a vendor in the DU validation service, the vendor must be approved by Fannie Mae and have entered into a contract for the services provided with at least one Fannie Mae approved lender. The vendor’s agreement with the lender(s) must permit the vendor to share the information contained within the verification report with Fannie Mae electronically for use by the DU validation service.

Lenders are required to establish their own controls to manage and monitor the vendors they use in accordance with their own regulatory requirements. These requirements are in addition to the requirements outlined within this Guide.

Vendors may participate as part of the DU validation service in two ways:
  1. Direct integration with DU and providing verification reports and/or vendor data directly to lenders.
    Vendor Workflow
  2. Direct integration with DU but providing verification reports and/or vendor data to a report distributor who in turn provides that information to a lender. The following requirements apply:
    • The vendor must have a relationship with the report distributor.
    • The vendor must ensure that the verification report and/or vendor data being provided by the report distributor to the lender is an exact match to the fields required to be provided by the vendor to the DU validation service.
    • Because report distributors are not directly integrated with the DU validation service, they are not required to be approved by Fannie Mae, and the requirements of this Reference Guide are not applicable.

In either case, DU obtains an electric copy of the data from the vendor directly integrated with DU, which is the same information reflected on the verification report provided by the vendor to the lender.

Lenders must have access to the exact information that is used by the DU validation service as the lender is held accountable for the identification of any contradictory or conflicting information between the data used by the DU validation service and the verification report.

For more information, please contact your Digital Alliance Manager.