No more paystubs? Mortgage lenders to start relying on Equifax data instead of paystubs and tax returns. What could go wrong?
"Under Fannie Mae's new initiative, mortgage lenders that use The Work Number will not be required to obtain W-2's or pay stubs from applicants. Equifax will independently verify employment and income without the applicant needing to provide additional paperwork in some instances."
Equifax's cooperative relationship with quasi-governmental agency Fannie Mae is leading to 'financial innovations' not seen for a few years. I've got to wonder: if investors later find out their MBS portfolio is full of incorrect income figures, will the investors be able to sue Equifax for its faulty database?
Full Equifax press release here: http://www.prnewswire.com/news-releases/fannie-mae-to-introduce-equifax-trended-data-and-verification-services-to-underwriting-platform-300161869.html
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