Data Facts Lending Solutions Blog

3 years of Day 1 Certainty: What You May Have Overlooked

by Matt Holmes

Oct 22, 2019 9:07:06 AM

Soon, Fannie Mae's Day 1 Certainty program will be turning three years old. At the outset, the Business people pointing computervalidation program was widely known for its ability to offer lenders freedom from reps and warrants. But today, it turns out there’s a whole lot more to the benefits of Day 1 Certainty than lenders initially thought.

Fannie Mae launched its comprehensive Day 1 Certainty initiative in 2016- a process by which lenders could realize freedom from representations and warranties by validating income, assets, and employment via Fannie’s Automated Underwriting Engine; Desktop Underwriter.

Of course, the extent of this loan guarantee is enough to turn heads. But there are additional features about Day 1 Certainty that deserve a double-take.

It’s making the loan process more efficient.

In the past 10 years, industry requirements have made it difficult for processors and underwriters to get loans through the pipeline quickly and efficiently. Relying on borrower-supplied documentation adds another level of risk, and has only added to the struggle. But because Fannie Mae’s DU service can electronically verify the borrower’s information, lenders are saving time and money by freeing themselves from paper-based validation and speeding up the process.

It enhances the borrower experience.

Fannie Mae’s digital asset validation comes in handy for borrowers because it eliminates the need for them to manually track down documentation. Plus, these efficiencies make the turn-time quicker as a whole, which is something borrowers will always appreciate.

For example, asset validation is almost instantaneous, so long as consumers are willing to provide banking credentials. Yes, this seems a bit personal, however, 21st century consumers are warming up to the idea. According to a survey conducted by Experian, nearly 90% of consumers are willing to share personal information with companies they trust.

It’s helping lenders generate more business.

Because Day 1 Certainty is helping lenders mitigate the burden of labor-intensive verifications and manual underwriting functions, they can focus on what matters most to their business. This could mean concentrating on new marketing initiatives with the savings accrued from using D1C-approved products.

D1C is revolutionizing the mortgage processing and underwriting workflow; making it simpler than ever. If you haven’t taken a look at the additional benefits of day 1 Certainty, now might be the time to discover them. Check out this video for more on how Day 1 Certainty can benefit your business, and how Data facts can help.


Topics: Mortgage Lending, DU Day 1 Certainty, Verifications

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