Freddie Mac Single-Family Seller/Servicer Guide 5302.3 — Third-party verification service providers: employment and income verifications

Freddie Mac Single-Family Seller/Servicer Guide 5302.3 — Third-party verification service providers: employment and income verifications

Effective 2026-06-03 · Freddie Mac's stamp for this section

This section contains information related to: ■ General requirements for third-party service provider verifications ■ Employment and income verifications ■ 10-day pre-closing verifications (PCV) (a) General requirements for third-party service provider verifications Employment, income and 10-day PCVs obtained through third-party verification service providers are acceptable if the following requirements are met: ■ The verifications must be received by the originator directly from the third-party verification service provider ■ If any required information is missing, the Seller must obtain additional documentation to supplement the third-party verification ■ The Seller is responsible for the accuracy and integrity of the information provided by the third-party verification service providers ■ The Seller must verify that all third-party verification service providers have procedures in place to comply with quality control requests for reverification from Freddie Mac, the Seller and/or Servicer (b) Employment and income verifications A copy of the verification must be retained in the Mortgage file and: ■ Employment and income verifications must contain sufficient information to determine stable monthly income as required by Topic 5300 ■ If the verification is completed using employment and/or income information from an electronic database, the verification must evidence that the information in the database is no more than 35 days old Note: Refer to Section 5102.4 for more information about the age of documentation requirements. (i) Mortgages that use automated income assessment using employed income data In lieu of the requirements of this section, Mortgages that use automated income assessment using employed income data must comply with the requirements in Section 5303.4(c) if the Last Feedback Certificate indicates Seller’s eligibility for representation and warranty relief is “Eligible” or “Partial” as described in Section 5303.4(d)(ii). (ii) Mortgages that use automated income assessment with Loan Product Advisor using account data In lieu of the requirements in this section, Mortgages that use automated income assessment with Loan Product Advisor using account data must comply with the requirements in Section 5303.5(c) and/or 5305.2(c), as applicable, if the Last Feedback Certificate indicates Seller’s eligibility for representation and warranty relief is “Eligible” or “Partial” as described in Section 5303.5(d)(ii) and/or 5305.2(d)(ii), as applicable. (c) 10-day PCVs Verification of the Borrower’s current employment (10-day PCV) must be obtained in accordance with the requirements of this section. If a third-party verification service provider is used, employment information must be verified and documented by the third-party verification service provider directly through the employer’s electronic database or the electronic database of the employer’s third-party payroll services provider. The 10-day PCV, when required, must be obtained no earlier than 10 Business Days before the Note Date and no later than the day before the Delivery Date. As stated above, the employment verification must evidence that the information in the database is no more than 35 days old. The employment verification must contain: ■ Name of Borrower ■ Name of employer ■ Borrower’s current employment status ■ Any additional information that was verified ■ Date employment information was issued from the employer to the third-party verification services provider (e.g., effective date, current as of date) ■ Date verification was issued to the Seller by third-party verification service provider The form used by the third-party verification service provider must contain the name and contact information of the service provider.

Source: Freddie Mac Single-Family Seller/Servicer Guide 5302.3 — Third-party verification service providers: employment and income verifications · source URL · snapshot 4c94f67729042dd6