Working with Encompass and Fannie Mae’s Day 1 Certainty

Working with Encompass and Fannie Mae's Day 1 Certainty Income, Employment, and Asset Verification

Last Revised: May 17, 2024

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Contents

Encompass Support for Day 1 Certainty ....................................................................................................... 3 Populating GSE Additional Provider Data with Verification Report Information ......................................... 4

Manual Entry versus Auto-Populated Fields and Reseller Support .......................................................... 4 Auto-Population........................................................................................................................................ 4 Manual Report ID Entry ............................................................................................................................ 5 Reseller Support........................................................................................................................................ 5 Additional Information.................................................................................................................................. 5 Vendors No Longer Supported by Day1 Certainty.................................................................................... 5

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Encompass Support for Day 1 Certainty

Fannie Mae's Day 1 Certainty program introduces a streamlined process and freedom from certain representations and warranties when lenders use automated verifications for income, employment, and assets from approved vendors. This information is retrieved and validated by the DU Validation Service. Using these services relieves the lender from requesting and gathering pay stubs and bank statements from borrowers. Lenders can now obtain borrower permission to electronically order tax return, employment, income, and asset verification from Day 1 Certainty-approved service providers and their resellers. The resulting report ID needs to be included in a subsequent submission to Fannie Mae's Desktop Underwriter? (DU?) and they will confirm the verification and associated representation and warranty relief in DU messages. Automated verifications and Representation and Warranty relief from Fannie Mae results in expedited loan processing and greater certainty when selling loans to investors. NOTE: For more information, see Day 1 Certainty. To support the Day 1 Certainty program, the Additional Provider Data section of the FNMA Streamlined 1003 input form (for URLA 2009 loans) and the GSE Additional Provider Data input form (for URLA 2020 loans) have been updated to include direct Day 1 Certainty-approved service providers.

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Populating GSE Additional Provider Data with Verification Report Information

To support the Day 1 Certainty program, the GSE Additional Provider Data input form has been updated to include direct Day 1 Certainty-approved service providers. This form is where the verification report ID is populated to be included in a submission to Fannie Mae's DU (Desktop Underwriter).

Manual Entry versus Auto-Populated Fields and Reseller Support

For select service providers, the report ID is auto populated in the GSE Additional Provider Data input form when the service is ordered through Encompass and the report is returned (to Encompass).

Auto-Population

Auto-population will continue to be added for additional vendors in the future. Currently, the report ID is auto-populated for vendors and services, including but not limited to, the following:

o FormFree by AccountChek ? Asset Verification (Encompass and Encompass Consumer Connect) o Blend ? Asset Verification o Encompass 4506-T Service (with DataVerify and CoreLogic) - Tax Transcript NOTE: You do not need to enter the report ID for Equifax services, which include the Equifax 4506-T or The Work Number. These services rely on lender loan number. For more information, see the Additional Information table. Auto-population will be added for additional vendors in the future.

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Manual Report ID Entry

Services for which report IDs are not auto-populated, you will need to manually enter or copy/paste the report ID into the applicable field(s) on the GSE Additional Provider Data input form. Authorized Encompass users can enter the Report ID associated with the service provider in these fields so that the information can be included in the loan file submitted to Fannie Mae's DU (Desktop Underwriter).

Reseller Support

If you are ordering Day 1 Certainty services from resellers of approved report providers, enter the report ID in the field associated with the underlying direct report provider.

For example, if a FormFree asset verification is ordered from another provider, enter the report ID on the AccountChek lines in the GSE Additional Provider Data input form.

Additional Information

Most Day 1 Certainty service providers listed in GSE Additional Provider Data input form, such as Blend Asset, have designated fields for borrower and co-borrower report IDs. If the service provider does not have designated lines for borrower and co-borrower report ID entry, such as Blend Income (Bor,CoBor), type the report ID in the format provided with the field name.

Vendors No Longer Supported by Day1 Certainty

The following vendors are no longer supported by Day1 Certainty, but display in Encompass. These fields will be removed from the input forms with future Encompass releases:

? Early Warning Services ? Informative Research 4506T ? Universal Credit ? Covius ? First American ? Inco-Check ? Yodlee ? BankVOD ? Quovo ? Roostify ? CoreLogic (VOE/VOI) (Bor,CoBor) ? Taxdoor ? ComplianceEase ? BankVOD IRS ? QuestSoft ? CreditPlus

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