ATLANTA, May 11, 2021 /PRNewswire/ -- Complex income
situations on mortgage applications can create incremental work for
mortgage bankers and brokers as they look to review and approve
homebuyers for mortgage financing. Equifax Workforce Solutions
recently announced that lenders can now request "All Employers
Within 36 months" to pull the prior 36 months of income and
employment data available on The Work
NumberⓇ database to help create a more informed,
expanded view of a consumer's potential ability to pay.
"The recent economic upheaval has meant that some lenders are
seeing a rise in applications from borrowers with more complex
income profiles which can slow down the approval and underwriting
process," said Joel Rickman, Senior
Vice President of Verification Services at Equifax Workforce
Solutions. "Most mortgage applications that come in with complex
income will require two years of tax returns, but pulling three
years of income and employment from The Work Number can show
lenders data from a similar timeframe that helps give them
better context for considering ability to pay."
According to Fannie Mae underwriting guidelines, the "stable and
reliable flow of income is a key consideration in mortgage loan
underwriting." Among many different income scenarios,
commission-based individuals, those who have had employment
disruptions or those who are applying with real-estate income or
assets often require a deeper look into debt-to-income
(DTI) and income stability. With a 36-month view, lenders can
review income that may sit outside of calendar/tax years to more
quickly identify income trends that may suggest income or earnings
potential that indicate better continuity and ability to pay.
Since pioneering automated verifications 25 years ago, The Work
Number service has gained the trust of more than 1 million employer
contributors, thousands of lenders and Government-sponsored
enterprises (for GSE validation programs). Verifications through
The Work Number allow credentialed lenders with permissible purpose
to quickly and securely tap into the largest commercial source of
consolidated employment information with more than 115 million
active records. With the use of an All Employers Within 36 months
verification from The Work Number, credentialed mortgage lenders
can quickly receive the necessary data to more efficiently
interpret applications with complex income.
ABOUT EQUIFAX INC.
At Equifax (NYSE: EFX), we believe
knowledge drives progress. As a global data, analytics, and
technology company, we play an essential role in the global economy
by helping financial institutions, companies, employers, and
government agencies make critical decisions with greater
confidence. Our unique blend of differentiated data, analytics, and
cloud technology drives insights to power decisions to move people
forward. Headquartered in Atlanta
and supported by more than 11,000 employees worldwide, Equifax
operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia
Pacific region. For more information, visit Equifax.com
For more information
mediarelations@equifax.com
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SOURCE Equifax Inc.