Verification of EmploymentVOE
A verification of employment (VOE) is a lender’s confirmation that a borrower works where the application says they work, in the role and at the income stated. Mortgage lenders typically perform a written VOE (Form 1005) during underwriting and a verbal VOE within 10 business days of closing.
The written VOE (WVOE)
The written VOE, often abbreviated WVOE, is a form the lender sends to the employer during underwriting. Fannie Mae Form 1005 is the standard: it asks the employer to confirm position, hire date, base pay, overtime and bonus history, and the probability of continued employment. Lenders order a WVOE when paystubs and W-2s are unavailable or insufficient, or when income structure needs employer confirmation (commission, recent job changes, employment gaps).
Turnaround depends entirely on the employer. Large employers route WVOEs to a service like The Work Number; small employers may take days to return the form, and every request is a task on someone’s desk at both companies.
The verbal VOE (VVOE)
The verbal VOE, or VVOE, is a phone call made shortly before closing to confirm the borrower still works there. It exists because income that disappears between application and closing is one of the fastest ways a performing loan becomes a problem loan.
There is no GSE-mandated VVOE form, but the call must be documented, and most lenders use an internal worksheet that captures: the name and title of the person who placed the call, the date of the call, the name and title of the employer contact who answered, the business name, and, critically, the source of the phone number. The number must be obtained independently (directory assistance, the employer’s verified website, a database), not taken from the application, because a borrower-supplied number can ring to anyone.
Fannie Mae VOE requirements
Fannie Mae’s Selling Guide (B3-3.1-07) requires a verbal VOE for each employed borrower within 10 business days prior to the note date. For self-employed borrowers, the requirement is different: the lender must verify the existence of the business through a third party (a CPA, regulatory agency, or licensing bureau) within 120 calendar days prior to the note date.
The written VOE can be waived when income is validated through Desktop Underwriter’s validation service (Day 1 Certainty): if DU validates income from an eligible data vendor, the lender gets relief from the documentation requirement. Freddie Mac’s AIM program works the same way on the automated-asset-and-income side. The verbal VOE requirement, however, does not disappear under either program.
The fraud problem with phone-based VOE
The verbal VOE has a structural weakness: the lender calls a phone number that ultimately traces back to information the borrower supplied. Fannie Mae’s fraud team maintains a list of fictitious employers, 63 named entities and growing, invented specifically to answer these calls. Some maintain websites and staffed phone lines whose only job is to confirm employment for co-conspirators.
Income misrepresentation is the most common finding in Fannie Mae fraud investigations, at 46% of confirmed cases. The VOE call, as traditionally performed, is not a strong control against it. It is one of the main channels for first-party fraud: a real applicant misrepresenting their own employment or income.
Instant VOE from payroll data
Payroll-sourced verification flips the trust model. Instead of calling a number, the lender receives employment and income data directly from the payroll system of record (with the borrower’s consent) in seconds. The employer’s identity is established by the payroll provider’s relationship, not by whoever answers a phone. It also captures what a call can’t: pay frequency, year-to-date earnings, and deductions.
Because it is a data pull rather than a document request, the pre-closing re-verification becomes a refresh instead of a new round of phone tag. This is how instant employment verification works in RAVEN.
Written vs. verbal vs. payroll-sourced VOE
| Written VOE (WVOE) | Verbal VOE (VVOE) | Payroll-sourced VOE | |
|---|---|---|---|
| What it confirms | Position, hire date, base pay, probability of continued employment | Borrower is still employed at the stated employer | Employer, role, hire date, pay frequency, year-to-date earnings |
| When it happens | During underwriting | Within 10 business days of the note date | Any point in the loan; re-verification is a refresh |
| Turnaround | Days, employer-dependent | Minutes to days of phone tag | Seconds |
| Fraud resistance | Form can be completed by a coached contact | Defeated by fictitious-employer schemes | Data comes from the payroll system of record |
| Typical cost | Staff time, or $55–$280 via a service | Staff time | A few dollars per pull |
Common questions
When do lenders verify employment?
Twice, typically: a written or data-sourced VOE during underwriting, and a verbal re-verification within about 10 business days of closing to confirm nothing changed.
What is a WVOE?
A WVOE is a written verification of employment: a form (Fannie Mae Form 1005 for conforming loans) that the employer completes to confirm position, hire date, pay, and the probability of continued employment. Lenders order it when paystubs and W-2s aren’t sufficient on their own.
What is a verbal VOE (VVOE)?
A VVOE is a phone call the lender makes within 10 business days before closing to confirm the borrower is still employed. The lender must document who called, who answered, and where the phone number came from; the number has to be sourced independently, not taken from the application.
What are Fannie Mae’s verbal VOE requirements?
Per Selling Guide B3-3.1-07: for employed borrowers, a verbal VOE within 10 business days prior to the note date. For self-employed borrowers, verification that the business exists through a third party within 120 calendar days prior to the note date. DU income validation can waive the written VOE, but not the verbal one.
How long is a VOE valid?
Income documentation, including a written VOE, must generally be no more than 120 days old at the note date under GSE guidelines. The verbal VOE has a tighter window: within 10 business days of the note date, which is why it lands in closing week.
How much does a VOE cost?
Third-party VOE services like The Work Number commonly charge $55 to $280 per verification depending on the product. Payroll-API verification typically costs a few dollars per pull.
Can a VOE be faked?
Phone-based VOEs can be and are defeated by fictitious employer schemes. Payroll-sourced VOE is materially harder to fake because the data comes from the payroll system of record rather than a person answering a phone.