A to Z of Mortgage VOE for Brokers and Lenders

October 12, 2023

Contents

What Are the Different VOE Options?

Outsourcing VOE to Third-Party

Picture this: a group of professionals gathered around a screen, graphs and numbers flashing like a Vegas slot machine. No, it’s not the latest Wall Street blockbuster; it’s just another day in the world of mortgage lending. Amidst the numbers, you’ll often hear a peculiar acronym: VOE. It stands for Verification of Employment and in the mortgage game, it’s what unifies the entire process and keeps it from falling apart. But why should you, as a broker or lender, care about this at all? Well, it’s not just another financial jargon. VOE is your golden ticket to ensuring that your borrowers are able to pay their mortgages.

Let’s take a closer look at the verification process.

What is VOE for mortgage and why is it important?

VOE in the world of mortgage is the meticulous process through which a borrower’s employment status and income are confirmed. It’s the linchpin that ensures borrowers have a stable income to fulfill their monthly mortgage obligations.

Now, here’s where it gets interesting.

Against the backdrop of regulatory milestones like the Dodd-Frank Wall Street and Consumer Protection Act of 2010 and the watchful gaze of the Consumer Financial Protection Bureau (CFPB), the significance of accurate and comprehensive VOE has grown exponentially. These regulations are engineered to uphold both consumer protection and the integrity of the financial sector. They underscore the need for transparency, equitable lending practices and responsible lending.

What are the different VOE options for lenders & brokers?

Timing is everything in the world of mortgage and the efficient execution of VOE can make all the difference. A streamlined process ensures that you obtain the necessary employment and income verification documents promptly, helping you meet critical deadlines and reducing the risk of delays in your lending process.

Here are some VOE options that you can explore.

In-house team: One common approach is to maintain an in-house team responsible for VOE. This option offers direct control over the verification process, allowing for real-time communication with employers. However, it can be labor-intensive and time-consuming, potentially leading to processing bottlenecks
Automated third-party services: Leveraging third party verification providers such as Argyle, ExperianVerify, Truv, or Veri-Tax automates the verification process, saving time and reducing the risk of human errors. They often integrate with various data sources and offer a faster, more reliable way to verify employment details
Outsourcing to comprehensive third-party services: Some lenders and brokers opt to outsource not only VOE but also other essential tasks, all bundled into one comprehensive service. This approach can streamline the entire mortgage application process, from credit checks to income verification, simplifying your workflow and potentially reducing costs.

Each of these options has its pros and cons and the choice often depends on your specific needs, available resources and the level of control you want over the VOE process. Consider your priorities and objectives to determine which VOE solution works best for you.

How can you benefit from outsourcing to a third party?

Let’s say that you’re expected to crunch some numbers. You could choose to do the math on your own or speed up the process by adding the right formulas to an Excel sheet. Your math could be flawless but there’s always a risk of miscalculations. Likewise, you may opt for an in-house team for the VOE process but there’s always the risk of error and fraud.

Outsourcing mortgage process tasks to a third-party provider can be a strategic decision that offers numerous advantages, particularly when it comes to third party verification services. These services can play a key role in ensuring the accuracy and reliability of information provided by applicants.

Third-party verification services: How they work

Third party verification services are integral to the mortgage application process. They involve independent verification of key information provided by borrowers, such as income, employment and assets to ensure accuracy. The process typically includes:

Data Collection: Borrowers submit their financial information to the lender during the mortgage application process. This includes pay stubs, tax returns, bank statements, and other documents
Verification Request: The lender sends a verification request to the third-party service provider, specifying the information that needs to be verified
Contacting Sources: The third-party provider contacts the relevant sources to verify the information. This may involve reaching out to employers, financial institutions, or tax authorities to confirm details provided by the borrower
Verification Report: Once the verification is complete, the provider generates a verification report, which is sent to the lender. This report is a crucial tool for lenders in making informed decisions about the mortgage application

In a nutshell

Why outsourcing VOE to a third party is the best option

Streamlines the process, ensuring quick verifications, saving time and resources

Enhances data accuracy and security thanks to direct access to HR/payroll databases, reducing human errors and the risk of fraud

Timely, data-rich updates that include pay information and employment details for thorough verification

Why choose Aritas for ordering third- party verification

You’re out for lunch with a potential client, telling them all about your services while your third party provider is taking care of your verification needs. That’s Aritas for you. We work as an extension of your team to optimize your operations.

Here’s how you can leverage this partnership

Benefit from our proven expertise
Backed by over 15 years of industry experience, our team is well-equipped to deliver efficient VOE services. Our longevity in the industry demonstrates our commitment to reliability and expertise in handling processes.

Stay on top of regulations
We help you keep up with relevant regulations, including the Fair Credit Reporting Act (FCRA). Our stringent adherence to these guidelines ensures that your VOE requests meet all legal requirements, reducing your risk and ensuring data accuracy

Reduce your turnaround time
Aritas understands the importance of timeliness in the mortgage industry. Our average turnaround time for VOE requests is among the best in the industry. Additionally, we offer expedited and rush services for urgent requests, so you never have to miss a critical deadline again

Be in sync with market demand
We recognize that the volume of VOE requests can fluctuate. Aritas offers the flexibility to accommodate variations in demand by adapting to the changing market demands

Comprehensive Services
Beyond Verification of Employment (VOE), Aritas offers a wide range of verification services, including Verification of Income (VOI) and Verification of Assets (VOA). This comprehensive suite of services streamlines your verification needs and simplifies your workflow.

When you choose Aritas, you’re choosing a partner dedicated to helping you navigate the challenges of mortgage verification with confidence and efficiency.

Ready to optimize your processes? We have great news. It’s the season of giving and we’re giving complimentary services for a month so you can experience the Aritas impact. Learn more about our offer here.