Verification of Employment (VOE) is a required component of loan underwriting to confirm a borrower’s current employment status. All borrowers must have their employment verified prior to loan closing to ensure income stability and accuracy of provided information. The type of documentation accepted depends on whether the borrower is wage/salary based or self-employed, and must be current within the prescribed timelines.

For wage or salary borrowers, verification may be established through a year-to-date paystub dated within 30 days of the Note date. Alternatively, a verbal VOE is acceptable if completed no more than 10 calendar days before the Note date. Email verification with the borrower’s current employer, dated within the same timeframe, may also be used. Underwriting has discretion to utilize any standard verification form, provided the required data is captured.

The VOE must include specific details to ensure compliance and accuracy. At minimum, the following information should be documented: borrower name, loan ID number, current position, confirmation that employment is active, employer name, employer contact name and title, name of the individual completing the VOE, and the verified business phone number. Contact information must be independently confirmed to maintain data integrity and prevent misrepresentation. These verification measures provide lenders with the necessary assurance that the borrower’s employment is valid and ongoing at the time of loan origination. Consistency in applying VOE standards helps uphold regulatory requirements, mitigate risk, and ensure the accuracy of borrower qualification.