Georgia-based FormFree announced that it has entered into a pilot with Fannie Mae that could allow mortgage lenders to validate borrower income, asset and employment data through a single report as early as 2018. The company is currently in the pilot stage and Fannie Mae said it expected a broad rollout for the program in 2018.
Fannie Mae unveiled its Single Source Validation at the Mortgage Bankers Association (MBA) annual convention in Denver on Monday. FormFree was among the first vendors to collaborate with Fannie Mae on its Day 1 Certainty program, which was launched at the MBA convention last year.
“One year ago, we celebrated the start of a new era in mortgage lending with Fannie Mae’s introduction of Day 1 Certainty. Today, we take great pride in announcing another milestone in FormFree’s association with Fannie Mae and a huge leap forward for the mortgage lending industry as a whole,” FormFree Founder and CEO Brent Chandler said in a press release. “Single Source Validation will have a transformational effect on driving down the cost and risk of making sound underwriting decisions while making it easier and safer than ever for borrowers to provide the sensitive data required to apply for a mortgage loan.”
Fannie Mae named FormFree its first authorized vendor for asset verification through the Desktop Underwriter validation service a year ago. Day 1 Certainty offers lenders freedom from reps and warrants for validated components of loans submitted through Fannie Mae’s DU validation service and Collateral Underwriter.
Currently in testing, Single Source Validation is designed to enhance the DU validation service by allowing lenders to combine three validation steps into one and reduce operational risk associated with managing multiple vendors.
FormFree’s flagship app, AccountChek, lets consumers transmit their online banking, retirement and investment account data for automated analysis and standardized delivery to lenders and their investors using FormFree’s secure ReIssueKey. To date, AccountChek has received more than 1 million asset report orders from more than 1,000 U.S. lenders.