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Understanding the verbal verification of employment form
What is a Verbal Employment Verification Form?
Verbal employment verification forms are tools used by employers, lenders, and third-party agencies to confirm a person's employment status and income details over the phone. Unlike written verification, which relies on physical or digital documents, verbal verification involves direct communication—typically between a human resources representative and the requesting party. This process is common in scenarios like mortgage applications, loan approvals, and background checks, where timely confirmation of employment and income is critical.
Key Elements of the Verbal Verification Process
- Verification requirements: The requesting party, such as a lender or mortgage company, will usually provide a list of requirements. These may include the employee’s job title, start date, current employment status, and income details.
- Contact information: The verifier will need the correct phone number for the employer’s human resources department or authorized representative.
- VOE form: A verbal verification of employment (VOE) form is often used to document the conversation. This form may be available as a PDF or as part of a forms catalog used by lenders and background check companies.
- Timeframes: Many lenders, including those following Fannie Mae guidelines, require that the verbal verification be completed within a certain number of business or calendar days prior to closing a loan or mortgage. This ensures the information is current.
Why Use Verbal Verification Instead of Written Forms?
Verbal verification is often preferred when quick turnaround is needed or when written documents, such as tax forms or pay stubs, are unavailable or insufficient. It can also help reduce fraud by confirming employment details directly with the employer. However, this method comes with its own set of challenges and best practices, which will be explored further in this article.
For a deeper dive into the role of verbal employment verification forms and how they fit into the broader landscape of background checks and income verification, you can read our comprehensive guide on verbal employment verification forms.
Why employers rely on verbal verification
Why Verbal Verification Remains a Trusted Method
Employers, lenders, and third parties often choose verbal employment verification for several practical reasons. This process involves confirming an employee’s job title, income, and employment status directly with a company’s human resources department or a designated verifier, usually over the phone. While written verification and forms like the VOE form or Fannie Mae’s templates are common, verbal verification offers unique advantages in certain scenarios.
- Speed and Efficiency: Verbal verification can be completed quickly, sometimes within a few business days, compared to waiting for written forms or legal documents to be filled and processed. This is especially important for time-sensitive transactions like mortgage or loan approvals.
- Real-Time Confirmation: Speaking directly with a company representative allows lenders or employers to verify employment and income details in real time. This reduces the risk of outdated information, which can occur if documents are not updated or if there are delays in processing.
- Fraud Prevention: Verbal verification helps reduce the risk of forged documents. By contacting the employer at a verified phone number, the verifier can ensure the authenticity of the information provided by the borrower or job applicant.
- Compliance with Requirements: Many lenders, including those following Fannie Mae guidelines, require a verbal verification of employment (VOE) within a specific number of calendar days prior to closing a loan. This step is crucial to confirm that the borrower is still employed and meets income requirements.
For example, in the mortgage industry, a lender may use a verbal verification form to confirm employment income just days prior to finalizing a loan. This helps ensure the borrower’s financial situation has not changed since the initial application. Similarly, employers may use verbal verification to quickly check a candidate’s employment history when time is limited or when written forms are unavailable.
Verbal verification is not without its challenges, but its speed, reliability, and compliance with industry requirements make it a valuable tool in the verification process. For more on how this applies to specific industries, such as rideshare, see our guide on understanding employment verification for Uber drivers.
Common challenges in verbal employment verification
Key Obstacles in Verbal Employment Verification
Verbal employment verification is a crucial step for lenders, employers, and third-party agencies when confirming a borrower’s income and job status. However, this process is not without its hurdles. Here are some of the most common challenges faced during verbal verification:
- Difficulty Reaching the Right Contact: Human resources departments or supervisors may not always be available to answer calls within the required business days or calendar days. This can delay the verification process, especially when strict timelines are set by lenders or mortgage companies.
- Incomplete or Inconsistent Information: Sometimes, the information provided verbally does not match the details on the employment verification form or supporting tax documents. Discrepancies in job title, employment income, or dates of employment can raise red flags for lenders and underwriters.
- Privacy and Legal Concerns: Companies must comply with legal requirements and privacy policies when sharing employee information. Some organizations require a prior note or written authorization before releasing details, which can slow down the verbal verification process.
- Fraud Risks: Without a physical or digital paper trail, verbal verification can be more susceptible to fraud. There is a risk that someone other than the authorized HR representative could fill in or verify employment details, especially if the phone number provided is not independently confirmed.
- Documentation and Record-Keeping: Unlike written verification or a signed VOE form (Verification of Employment), verbal confirmations often lack a standardized form or PDF record. This can create challenges for auditors or lenders who need to review the verification process later.
These challenges highlight why many organizations are turning to technology and enhanced verification forms catalog to streamline the process. For a deeper look at how credit monitoring arrangements and digital solutions are shaping background check trends, check out this analysis of credit monitoring’s impact on background checks.
Best practices for accurate verbal verification
Ensuring Consistency and Accuracy in Verbal Verification
Verbal employment verification is a critical step for lenders, employers, and third parties who need to confirm a borrower’s or employee’s income and job status. To ensure the process is reliable, organizations should focus on consistency and accuracy throughout each verification. Here are some best practices that can help:
- Standardize the Process: Use a clear verbal verification form or script. This helps human resources teams and verifiers ask the same questions every time, reducing the risk of missing key details like job title, employment dates, or income.
- Document Every Step: Even though the process is verbal, it’s essential to fill out a verification form or log the conversation. Record the date, phone number called, name of the company representative, and the information provided. Many organizations keep these records as part of their forms catalog or attach them to the employee’s file.
- Verify the Source: Always confirm you are speaking with an authorized representative of the company. This can involve calling the official business number listed on the company’s website or in public directories, rather than a number provided by the borrower or employee.
- Meet Regulatory Requirements: Lenders, especially those following Fannie Mae guidelines, must adhere to specific requirements for verbal verification of employment (VOE). This includes completing the verification within a set number of business or calendar days prior to closing a loan or mortgage. Check the latest requirements for VOE forms and timelines.
- Cross-Check with Written Documents: When possible, compare verbal responses with written verification, tax documents, or pay stubs. This helps catch discrepancies in employment income or job titles.
- Train Staff Regularly: Human resources and verification teams should receive ongoing training on the latest verification employment standards and legal documents. This ensures everyone understands the importance of accuracy and confidentiality.
- Use Secure Methods: Protect sensitive information by following company policies and legal guidelines for handling employment and income data, whether the verification is verbal or documented in a PDF or other format.
By following these best practices, organizations can reduce errors, meet compliance standards, and maintain trust with lenders, borrowers, and employees. Consistent procedures also help when responding to requests for a VOE form or when filling out forms for a mortgage or loan application.
How technology is changing verbal verification
Digital Tools Streamlining the Verification Process
Verbal employment verification has traditionally relied on phone calls and manual note-taking. Today, technology is transforming how companies verify employment and income. Automated systems and secure online platforms now allow human resources teams to fill out a verification form or upload supporting documents directly. This shift reduces errors and speeds up the process, especially when lenders or third parties need to confirm a borrower’s job title, income, or employment status for a loan or mortgage application.Integration with Payroll and HR Systems
Modern verification solutions often integrate with payroll databases and HR management systems. This means that when a lender or employer requests a verbal verification, the system can quickly pull up-to-date employment income details, tax documents, and even a completed VOE form in PDF format. This integration helps meet strict requirements from organizations like Fannie Mae, which may require employment verification within a certain number of business days or calendar days prior to loan approval.Enhanced Security and Compliance
With sensitive information at stake, digital verification forms and platforms prioritize data security. Encryption and secure login protocols help protect employee records and legal documents. These tools also create audit trails, making it easier for companies to prove compliance with industry regulations and internal policies. This is especially important when handling third-party requests or responding to forms catalog requirements.Reducing Human Error and Delays
Automated reminders and digital workflows help ensure that verification requests are handled promptly. For example, if a lender needs a VOE form filled out within a specific number of days prior to closing, the system can alert the responsible HR staff. This reduces the risk of missed deadlines and incomplete forms, which can delay a borrower’s loan or mortgage process.Adapting to Remote and Hybrid Work
As more employees work remotely, traditional phone-based verbal verification can be challenging. Technology bridges this gap by allowing HR teams to verify employment from anywhere, using secure online platforms. This flexibility ensures that employment verification requirements are met, regardless of where the employee or verifier is located.What job seekers should know about verbal verification
What Job Seekers Should Expect During Verbal Employment Verification
If you’re applying for a new job, a mortgage, or a loan, you may encounter a verbal employment verification (VOE) process. This is when a third party, such as a lender or background screening company, contacts your current or previous employer to confirm your employment and income details. Here’s what you should know to be prepared:- Information typically requested: Employers are usually asked to confirm your job title, dates of employment, and sometimes your income. Some forms may also require details about your employment status or whether you are a full-time or part-time employee.
- Who conducts the verification: Human resources departments or designated company representatives often handle these requests. They may use a standard verification form or respond verbally over the phone.
- Why lenders and employers use verbal verification: Lenders, especially for mortgage or loan applications, rely on verbal verification to ensure the information you provided matches official company records. This helps them meet requirements from organizations like Fannie Mae and reduces the risk of fraud.
- Timing and response: Many companies have policies about how quickly they respond to verification requests. It’s common for responses to be provided within a set number of business or calendar days. Some may require a prior note or written consent before releasing your information.
- Legal and privacy considerations: Your employer will only share information that complies with legal requirements and company policy. Sensitive data, such as tax documents or full income details, may only be released with your explicit permission or a signed authorization form.
- Technology’s role: Increasingly, companies use digital forms or secure portals to process verification requests, which can speed up the process and reduce errors compared to traditional phone calls or paper forms.
How to Prepare for a Smooth Verification Process
- Inform your human resources department or manager if you expect a verification request, especially if you’re applying for a loan or mortgage.
- Double-check that your employment records, such as job title and dates, are accurate and up to date with your employer.
- Be ready to provide any required forms or authorizations, especially if your lender or employer requests a signed VOE form or PDF.
- Know your rights: You can ask what information will be shared and ensure your privacy is respected throughout the process.
