Borrower is suppose to disclose most recent 2 years employment history in a mortgage application. While doing so borrower does provide lender with his employment details including his employer name, employment span, current designation and employer contact number.
The details as provided are validated by the lender and documented in the loan file as verbal verification of employment. A verification specialist calls the employer number provided in the application to look for relevant authority to confirm employment for the borrower. Employment can be confirmed by Human Resource Team, Payroll, Accountant or any other authorized person in an organisation who is entitled to do so.
Verification specialist in addition to above mentioned details also confirms whether borrower’s employment with the employer is current. If it is found that borrower is on active leave, date of rejoining is also confirmed and that it is advisable to call back employer confirming same.
Details for borrower as confirmed over phone are documented by Verification specialist in a verbal verification form. Details of the authority who did verification on behalf of employer are also captured in the form along with the contact information. The form thus documented is duly signed and retained in the loan file for future reference.
Verbal Verification of employment is first done at the initial stage when file is being submitted to underwriter for approval and also at the final stage within 10 days closing when file is been approved by the underwriter.