Mortgage lenders are now required to confirm that you are still employed prior to closing on a mortgage, three business days prior in fact. Mortgage lenders are always required to verify that a borrower has not lost their job, been furloughed, laid off, or had their income altered prior to closing because it impacts their ability to repay the loan. Previously, lenders were able to document a borrower’s employment 10 calendar days prior to settlement.
But because of the pandemic and its economic impacts, mortgage lenders need to know whether or not borrowers have been affected by a layoff or a furlough due to COVID-19 with a VOE.
A VOE is a “Verification of Employment” form that is sent to employers to reconfirm your employment. However, the COVID VOE can be inaccurate because whoever is responsible for completing the VOE may delay its completion which can delay settlement. To help avoid a delay in your settlement, always provide your mortgage lender a reliable point of contact who can quickly and accurately confirm your employment.