FNMA Selling Guide B3-2-02 — DU Validation Service

fnma-sel-b3-2-02

FNMA Selling Guide B3-2-02 governs lender use of the Desktop Underwriter (DU) validation service for income, employment, and asset validation. Two foundational rules: the service is OPTIONAL (lenders not required to participate) AND lenders may NOT compel borrowers to participate. The borrower-no-compulsion rule prevents DU validation from becoming a de facto borrower mandate.

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source:
  type: regulation
  id: fnma-sel-b3-2-02
  authority: FNMA Selling Guide B3-2-02 — DU Validation Service
  description: |
    FNMA Selling Guide B3-2-02 governs lender use of the Desktop
    Underwriter (DU) validation service for income, employment, and
    asset validation. Two foundational rules: the service is OPTIONAL
    (lenders not required to participate) AND lenders may NOT compel
    borrowers to participate. The borrower-no-compulsion rule prevents
    DU validation from becoming a de facto borrower mandate.
obligations:
  - id: fnma-sel-b3-2-02-may-not-require-borrower-to-participate
    canonical_id: fnma-sel-b3-2-02-may-not-require-borrower-to-participate
    section: FNMA Selling Guide B3-2-02 — Lender may not require borrower to participate in DU validation service
    description: |
      [LENDER] shall NOT require a borrower to participate in the DU
      validation service as a condition of loan underwriting. While
      [LENDER] itself may choose to use the optional DU validation
      service for the loan, that choice cannot be conditioned on or
      imposed upon the borrower's consent or participation in any
      third-party data-sharing arrangement.
    type: refrain
    audit_question: For every DU-underwritten loan, can [LENDER] evidence that no borrower was conditioned to participate in the DU validation service as a prerequisite to underwriting consideration (e.g., reviewing loan-application terms, vendor consent forms, and underwriting workflow)?
    program_review: Does the program ensure no borrower is required to participate in the DU validation service as a condition of underwriting?
    file_review: For DU-underwritten loans, review application terms and vendor-consent forms; confirm no borrower participation was conditioned as a prerequisite.
    judgment: false
    feeds: []
    workflow_phase: loan_origination
    owner_role: underwriting_manager
    secondary_owner_role: compliance_officer
    cadence: per-borrower
    consequence: Forcing borrower DU-validation participation could be a UDAAP / consent issue plus a FNMA reps-and-warranties breach.
    tags:
      - round-d
      - regulator-direct
      - fnma
      - selling-guide
      - du-validation-service
      - borrower-consent
      - no-compulsion
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Selling Guide B3-2-02 — DU Validation Service
      source_class: fnma-guide
      source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
      snapshot_id: 5f7b8b79da595d76
      fetched_at: '2026-05-25T14:09:57Z'
      content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
      paragraph_quote: |
        may not require a borrower to participate in the DU validation service.
      drafter_attestation: |
        Copied verbatim from snapshot 5f7b8b79da595d76. B3-2-02 lender-
        may-not-require-borrower-DU-validation operative clause.
    promoted_at: '2026-05-25T18:35:18+00:00'
    promoted_from: fnma-sel-b3-2-02-roundd-v1.yaml
  - id: fnma-sel-b3-2-02-asset-verification-12-months-minimum
    canonical_id: fnma-sel-b3-2-02-asset-verification-12-months-minimum
    section: FNMA Selling Guide B3-2-02 — Asset verification report 12-month minimum for income/employment validation
    description: |
      If [LENDER] is using an asset verification report to validate
      income or employment via the DU validation service, [LENDER] shall
      order an asset verification report containing a minimum of 12
      months of data. This minimum coverage ensures the validation
      window captures enough transaction history to support income/
      employment reliability inferences.
    type: do
    audit_question: For every loan where [LENDER] used an asset verification report to validate income or employment via DU, can [LENDER] evidence the report covered at least 12 months of data?
    program_review: Does the program ensure that when an asset verification report validates income/employment via DU, the report contains at least 12 months of data?
    file_review: For loans using an asset verification report for income/employment validation, confirm the report covered ≥12 months.
    judgment: false
    feeds: []
    workflow_phase: loan_origination
    owner_role: underwriting_manager
    secondary_owner_role: loan_processor
    cadence: per-du-validation-loan
    consequence: Under-12-month asset reports cannot validate income/employment; reps-and-warranties breach risk if relied upon for DU validation.
    tags:
      - round-d
      - regulator-direct
      - fnma
      - selling-guide
      - du-validation-service
      - asset-verification
      - 12-month-minimum
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Selling Guide B3-2-02 — DU Validation Service — Asset Verification Reports
      source_class: fnma-guide
      source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
      snapshot_id: 5f7b8b79da595d76
      fetched_at: '2026-05-25T14:09:57Z'
      content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
      paragraph_quote: |
        the lender must order an asset veriﬁcation report with a minimum of 12
      drafter_attestation: |
        Copied verbatim from snapshot 5f7b8b79da595d76. B3-2-02 asset-
        verification 12-month-minimum operative clause. Quote uses U+FB01
        fi-ligature in "veriﬁcation" matching the PDF extraction. Tail
        ("months") paraphrased in description.
    promoted_at: '2026-05-25T18:35:18+00:00'
    promoted_from: fnma-sel-b3-2-02-roundd-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-25T18:35:18+00:00'
    candidate_path: obligations\_remediation\round-d-investor-guides\fnma-sel-b3-2-02-roundd-v1.yaml
    candidates_promoted: 2
    candidates_skipped_existing: 0

Verbatim regulatory text (2)

Verbatim provisions from FNMA Selling Guide B3-2-02 — DU Validation Service — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FNMA Selling Guide B3-2-02 — Lender may not require borrower to participate in DU validation service

may not require a borrower to participate in the DU validation service.

Source: FNMA Selling Guide B3-2-02 — DU Validation Service · source URL · snapshot 5f7b8b79da595d76

FNMA Selling Guide B3-2-02 — Asset verification report 12-month minimum for income/employment validation

the lender must order an asset veriﬁcation report with a minimum of 12

Source: FNMA Selling Guide B3-2-02 — DU Validation Service — Asset Verification Reports · source URL · snapshot 5f7b8b79da595d76