Due to the COVID-19 pandemic, the GSEs and Federal Agency’s have implemented temporary changes to their rules regarding the verification (and re-verification) of a borrower’s income and employment (see FNMA LL-2020-03, FHLMC Bulletin 2020-5, FHA ML 2020-05, VA Circ. 26-20-10, and RD Stakeholder Announcement dated March 27, 2020).
While these changes do not require any specific disclosure-type document to be given to, or executed by, the borrower, we have received a sizable number of requests for a document in which the borrower confirms that their income and employment are stable and have not been adversely affected by COVID-19.
To support these demands, we will be providing Cx23858 as a new generic, “upon request” document, which will appear in all Closing packages once requested. Through the document, the borrower declares that the following is true and correct:
- The borrower’s employment, income, liabilities, and assets as reflected on the copy of the URLA provided at Closing is current and correct;
- The borrower’s income and employment have not been impaired due to COVID-19;
- The borrower has not made any material omissions, misrepresentations, and misstatements throughout the loan process; and
- The borrower is unaware of any actual or pending changes to the borrower’s employment, income, liabilities, and assets which would negatively impact the borrower’s ability to repay the loan.
This document is now available for assignment. Clients who wish to have it assigned to their institution, or who may have questions or concerns about this document, may contact Client Support at 1.800.497.3584.