Does a lender need to verify reserves or assets as stated on the new mortgage loan application?
For DU Refi Plus, reserves and assets must be verified to the extent that the DU Underwriting Findings Report requires such verification. The lender is relieved of underwriting representations and warranties if the lender meets all of these requirements: enters data that is complete, accurate, and not fraudulent; follows the instructions in the DU Underwriting Findings Report regarding income, employment, asset, and fieldwork documentation; and complies with all other requirements as documented in the Selling Guide (Limited Waiver of Contractual Warranties for Mortgages Submitted to DU section). For Refi Plus (manually underwritten), the lender is not required to verify or document reserves or assets and may rely on the information stated by the borrower on the new mortgage loan application. Fannie Mae’s quality assurance process will not hold the lender responsible for information obtained as a result of its reverification of assets or reserves stated by the borrower or impose any max
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