What is Day 1 Certainty?

Day 1 certainty is a relatively new development in the underwriting world. In a nutshell, automated underwriting (used by just about all lenders) is now able to perform income, asset, and employment verification services. This means less documentation is needed from clients, and the pace at which a file can move will accelerate.

In addition, the propensity for appraisal waivers (no appraisal needed) will increase. Together, these innovations deliver greater speed, simplicity, and certainty to the lending process. They also promote greater digitization of data and processes to the mortgage industry, which will offer a better client experience!

Verification of Income, Assets, and Employment:

• Validates the loan application data up-front and provides faster and easier verification!
• Gives lenders the ability to offer their borrowers a dramatically better mortgage experience. Borrowers will be able to save time by using electronic data versus collecting documents such as paystubs, bank statements, and investment account statements.

Appraisal waivers:

• When a property receives a qualifying score through automated underwriting, an appraisal waiver will be received.
• Enables lenders to focus more of their attention on high-risk appraisals. It also makes the process more efficient for appraisers due to fewer underwriter requests for correction and clarification.