What Is a Verification of Mortgage (VOM)?

A Verification of Mortgage (VOM) is a document used within the mortgage application process. It serves as a formal statement from a current or previous mortgage servicer, providing a detailed account of a borrower’s mortgage history. Lenders utilize the VOM to gain insights into an applicant’s financial behavior and reliability when considering a new loan.

Understanding the Verification of Mortgage (VOM)

A Verification of Mortgage is a formal document that mortgage lenders use to verify an applicant’s past mortgage payment history and outstanding loan details. It assesses a borrower’s financial reliability and likelihood of making consistent payments on a new mortgage. A new lender typically requests it from a previous or current mortgage servicer. This direct verification offers a clear picture of an applicant’s financial conduct.

Key Information on a VOM

The Verification of Mortgage form includes specific details providing a comprehensive overview of a borrower’s past mortgage conduct. This typically includes the borrower’s name and property address. The form also lists the original loan number, initial loan amount, and the dates when the loan originated and is set to mature.

A VOM states the current outstanding balance and the regular monthly payment amount, which may encompass principal, interest, taxes, and insurance (PITI). It also details payment history, including any late payments over a specified period, often 12 or 24 months. The document provides the name and contact information of the mortgage servicer supplying the verification.

How VOMs are Used in Mortgage Underwriting

Mortgage underwriters use the information from a VOM to make informed lending decisions. They assess the payment history to gauge a borrower’s creditworthiness and reliability, noting the presence or absence of late payments. A consistent record of on-time payments reduces the perceived risk for the new lender.

The VOM also helps verify the existing mortgage payment amount, which is important for calculating the borrower’s debt-to-income (DTI) ratio. This ratio compares monthly debt payments to gross monthly income, indicating a borrower’s capacity to handle new obligations. The VOM complements credit reports by providing specific, detailed mortgage history directly from the servicer.

Obtaining a VOM

The new mortgage lender typically initiates the request for a Verification of Mortgage. The borrower usually provides written authorization, often through a consent form, allowing their current or previous mortgage servicer to release this information. The new lender then sends the VOM request form directly to the servicer. The servicer completes the form with the required details and returns it to the requesting lender. Processing times for a VOM can vary, but generally range from a few business days to a week.