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If the lender plans to do a verification of employment after the funding, where will that clause be included in the loan docs

by dinakum718 from , . Jul 12th 2013 Reply


Steven Cook (stcookmortgage@gmail.com)
#38 ranked lender in Washington - 256 contributions

There will probably NOT be a specific section that refers to that, other than any portion that deals with the lender having authorization to confirm necessaryinformation (credit, employment, etc.) to verify qualification for the loan. It might show up in an "Authorization" form saying something like: "We have applied for a mortgage loan from Lender. As part of the application process, Lender and the mortgage guaranty insurer (if any) may verify information contained inmy/our loan application and in other docuements required in connections with the loan, either before the loan is closed or as part of its qualitycontrol program."

Jul 12th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,895 contributions

Interesting question... Any pre-knowledge about job changes need to be disclosed to the lender. What is going on?

Jul 12th 2013
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,112 contributions

I would say about 99.99% of the time a lender will always do the verification before or on the day of closing. The only reason I could think that it might happen after closing is If your loan was randomly picked for an audit. Then they could go back and re-verify information that was previously disclosed.

Jul 12th 2013
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JoeMetzler - The question was more around job changes. If the borrower decides to change a job - 3 months from funding and if the lender is in the process of selling that loan, would that job change impact the loan?

Jul 12th 2013
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JoeMetzler - The question was more around job changes. If the borrower decides to change a job - 3 months from funding and if the lender is in the process of selling that loan, would that job change impact the loan?

Jul 12th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

Not sure they would ever do a verification after you close unless there is something that is brought to the lenders attention that doesn't look right. I doubt highly it would say anything in the loan docs. If the lender was doing some sort of audit, or checking for fraud maybe they would do a VOE post close.

Jul 12th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

It has no effect on you. Once your loan closes, you can do anything you want

Jul 12th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Employment verification can be done just prior to funding, to be sure you are still employed. What can be done after funding is a review of your tax return.

Jul 12th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,895 contributions

A few items: Lenders are required to do a verification of employment within usually 72-hours of closing. A known change in employment is supposed to be told to the lender. Unknown job changes, and one that occurs 3-months after closing isn't an issue. Sometimes end investors of the loan will do a verification of employment or re-verification of something. For the lender, it can be a major headache if something is discovered post closing. They might now have an unsellable or uninsurable loan. For you the borrower, the loan is closed. Nothing they can do.

Jul 12th 2013
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Elden Lewis (elewis_409_299)
#41 ranked lender in Indiana - 223 contributions

I believe there is no clause included in the loan docs regarding verification of employment after funding. If it does happen it may be a preemptive attempt to dealing with possible future issues. After the loan is closed there is nothing they can do until or if you dealt on the loan.

Jul 12th 2013
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Jason Vondrak (jvondrak)
#219 ranked lender in California - 1,741 contributions

Lenders will usually to a verification of employment right before funding of the loan, so you definitely want to avoid changing jobs if possible if you are in the middle of underwriting. If you know that you will be switching jobs in the middle of the process, let your lender know, so they are not surprised and can work around it.

Jul 12th 2013
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Pete Bass (PeteBass)
#31 ranked lender in Connecticut - 476 contributions

Verification of employment is done prior to closing......

Jul 13th 2013
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Raymond Denton (Raymond)
#10 ranked lender in Ohio - 224 contributions

Nobody does a verification of employment after the loan has funded and closed.

Jul 13th 2013
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Eric Vander Werff (Loanguy99201)
#87 ranked lender in Washington - 27 contributions

I don't ever remember a verifcation of employment happening after funding.

Jul 15th 2013
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