To prevent fraud, mortgage companies are required to independently verify information provided in the loan application by contacting third parties not involved in the transaction (e.g., employers, financial institutions). Relying solely on documents supplied by the borrower or MLO can lead to acceptance of falsified information.
“Verification of income, employment, and other borrower information must be obtained directly from third parties not involved in the transaction.”
— Fannie Mae Selling Guide; SAFE MLO National Test Study Guide
[References:, , Fannie Mae, Verification of Employment and Income, , ===========, , ]
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