Alternative Home Appraisal and Employment Verification Process During COVID-19
We hope that wherever you are reading this, you and your loved ones are safe and healthy. For our customers who want to purchase a home (or refinance), and their real estate agents and builders who continue to support their clients and the economy by continuing to safely do business, we are here for you.
Each day, we monitor the mortgage industry guidelines in each of the states where we are licensed to finance homes, and are working with our investors and government agencies to make the loan process as smooth as possible in these conditions.
With the Coronavirus making it difficult for mortgage companies to complete some parts of the loan process for their home buyers and refinancing homeowners via traditional verification methods, Fannie Mae, Freddie Mac, the Federal Housing Administration and Department of Veterans Affairs have adjusted their requirements for obtaining property appraisals and employment verification.
The issue of appraisers needing to inspect homes as part of the mortgage process has been a mounting concern as the virus has continued to spread throughout the nation.
The major government agencies, Federal Housing Finance Agency (FHFA) (for loans being bought by Fannie Mae and Freddie Mac), the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) have approved the use of external appraisals, drive-by appraisals, and desktop appraisals in certain circumstances to ensure that the mortgage process is not held up due to appraisal issues.
The appraisal companies that we work with are being mindful of conducting business safely for the home seller, while continuing to provide their services in a timely manner for home buyers and refinancing homeowners.
Your loan officer will notify you of the appraisal procedure that is required by your loan type.
With many businesses closed or their employees are working from home, mortgage companies have been provided with alternative options to obtain employment verification.
Some of the options we are currently allowed to use to verify the borrower and co-borrower's employment prior to closing, include:
Your loan officer and loan processor will advise you how they will be verifying your employment prior to your loan closing.
- Email from the employer with verification of the borrower’s salary
- Verbal verification of employment
- Recent year-to-date paystub or direct electronic verification of income from the borrower
- Bank statement showing a recent payroll deposit for the borrower’s employer
We are empathetic to your situation and working diligently to close your loan on time during these challenging circumstances. The options we have highlighted above could change as the challenges of doing business adjust, so if you have any questions or concerns at any point during the loan process, please contact your loan officer.