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LendingRisk.com Mortage Industry Dictionary

Terminology, definitions, terms, explanations, and documents for business professionals in the mortgage lending and mortgage risk management industries.

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Alternative Documentation

A documentation type description normally used as a reference to Fannie Mae / Freddie Mac acceptable alternative standard verification forms, to include:
  • Certified copies of previous 2 years W-2s and a full months most recent computer generated pay stubs with YTD figures in lieu of a VOE.
  • Two (2) months most recent bank statements in lieu of a VOD.
  • Certified copies of past twelve (12) months canceled checks to evidence timely repayment of a mortgage, in lieu of a VOM.

A loan with Alternative Documentation represents, more or less, the same amount of credit risk as a loan with Full Documentation. As such, sellers typically group Full and Alternative (Full/Alt) documentation types together for qualification and pricing purposes.

See Documentation Type
See Full Documentation
See Mortgage Loan Documentation Type Overview

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Terminology, definitions, terms, explanations, and documents for business professionals in the mortgage lending and mortgage risk management industries.