Definition & Meaning of Verbal Voe Form
A verbal VOE (Verbal Verification of Employment) form is a crucial document used primarily in the lending process. It serves to confirm a borrower's employment status, job title, and income through a direct phone call to their employer. This verification typically occurs shortly before the closing of a mortgage loan, ensuring that the information provided by the borrower is accurate and up-to-date. Common forms used for this purpose include Fannie Mae Form 1005 and Freddie Mac Form 90.
The purpose of the verbal verification of employment is to mitigate risk for lenders by ensuring that borrowers have stable employment and income, which is essential for loan repayment. By confirming employment details directly with employers, lenders can avoid potential discrepancies that might arise from self-reported information.
How to Use the Verbal Voe Form
Using the verbal VOE form involves several steps that both lenders and borrowers should understand. Lenders typically initiate the process by contacting the borrower's employer, using the verbal VOE form as a guideline to gather necessary information. The following steps outline the process:
- Initiation: The lender contacts the employer via phone.
- Information Gathering: The lender asks specific questions regarding the borrower's employment status, job title, salary, and length of employment.
- Documentation: The employer provides verbal confirmation, which the lender records on the verbal VOE form.
- Verification Completion: The lender finalizes the process by ensuring all information is accurate and complete before proceeding with the loan approval.
This systematic approach helps maintain the integrity of the loan process and protects both lenders and borrowers from potential issues.
How to Obtain the Verbal Voe Form
Obtaining a verbal VOE form is straightforward, as it is typically provided by lenders or can be found through various online resources. Here are some ways to obtain this form:
- Contact Lenders: Most lenders have their own versions of the verbal VOE form, which they can provide upon request.
- Online Resources: Certain financial websites may offer downloadable versions of standard forms like Fannie Mae Form 1005 or Freddie Mac Form 90.
- Employer's HR Department: Employers may also have templates or forms they use for verification purposes that can serve as a verbal VOE form.
Having the correct form is essential for ensuring that the verification process is efficient and compliant with lending requirements.
How to Fill Out the Verbal Voe Form
Filling out a verbal VOE form requires careful attention to detail to ensure all necessary information is captured accurately. Here’s how to fill out the form effectively:
- Borrower Information: Include the borrower's full name, contact information, and social security number.
- Employer Details: Document the employer's name, address, and phone number for verification purposes.
- Employment Information: Record the borrower's job title, start date, and current salary.
- Verification Date: Note the date when the verbal verification was conducted.
- Employer Confirmation: Include a section for the employer's representative to sign or confirm the information provided.
Completing the form accurately helps facilitate the loan approval process and reduces the risk of delays.
Why Should You Use the Verbal Voe Form?
The verbal VOE form is essential for several reasons in the lending process:
- Income Verification: It provides a reliable method for verifying a borrower's income, which is crucial for assessing their ability to repay the loan.
- Risk Mitigation: By confirming employment directly with the employer, lenders can reduce the risk of fraud or misrepresentation.
- Regulatory Compliance: Many lending regulations require thorough verification of employment to protect both lenders and borrowers.
Using the verbal VOE form enhances the credibility of the loan application and ensures that all parties involved have accurate information.
Who Typically Uses the Verbal Voe Form?
The verbal VOE form is primarily used by various stakeholders in the lending industry:
- Lenders: Mortgage lenders and banks use the form to verify a borrower's employment status before approving loans.
- Loan Officers: Professionals responsible for processing loan applications rely on the form to ensure data accuracy.
- Employers: Human resources departments may be contacted to provide necessary employment verifications.
- Borrowers: Individuals applying for loans must be aware of this form as it plays a critical role in their loan approval process.
Understanding who uses the verbal VOE form can help borrowers prepare for the verification process.
Key Elements of the Verbal Voe Form
The verbal VOE form includes several key elements that are essential for effective employment verification. These elements ensure that all necessary information is captured:
- Borrower's Identification: Full name, social security number, and contact details.
- Employer Information: Name, address, and phone number of the employer.
- Employment Details: Job title, employment start date, and current salary.
- Verification Method: Documentation of how the verification was conducted (e.g., phone call).
- Confirmation Signature: Space for the employer's representative to confirm the details.
Each of these elements plays a vital role in ensuring that the verification process is thorough and compliant with lending standards.
Examples of Using the Verbal Voe Form
Real-world scenarios illustrate the practical application of the verbal VOE form. Here are a few examples:
- Home Mortgage Application: A borrower applies for a mortgage and provides their employer's contact information. The lender uses the verbal VOE form to confirm the borrower's employment and income.
- Auto Loan Approval: An individual seeking an auto loan may also need to provide a verbal VOE to confirm their income, especially if they are self-employed.
- Rental Applications: Landlords may request a verbal VOE from prospective tenants to verify their employment and income stability.
These examples highlight the versatility and importance of the verbal VOE form across various financial transactions.
