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Definition of Verification of Deposit from Mortgage Glossary

Verification of Deposit A document requested by a lender and signed by a borrower's financial institution that verifies the balances of the borrower's financial accounts. Verification of Deposit or VOD should be completed by bank to verify borrower's current and average bank balances over the last two months. The applicant must sign this form (Form 1006) to authorize his or her depository to release the requested information. Separate forms should be sent to each depository named in the loan application. However, rather than having the applicant sign multiple forms, the lender may have the applicant sign a borower's signature authorization form, which gives the lender blanket authorization to request the information it needs to evaluate the applicant's creditworthiness. When the lender uses this type of blanket authorization, it must attach a copy of the authorization form to each Form 1006 it sends to the depository institutions in which the applicant has accounts. For First Mortgages The lender must send the request directly to the depositories. The lender must receive the completed form directly from the depositories. The completed form should not be passed through the applicant or any other party. For Second Mortgages The borrower may hand-carry the verification to the depositories. The depositories will then be required to mail this form directly to the lender. The lender retains the original form in its mortgage file. Downloan current 1006 form at Fannie Mae web site.				You'll be re-directed to Loan Savings Solution Web Site
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