An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

Verification of Deposit and Income Forms

A Verification of Deposit form is a document that is part of a personal mortgage loan application package and is used as a risk-mitigation measure. It is sent from one financial institution to another to confirm either that a customer’s:

  • cash deposit amounts as reported on the loan application are correct
  • account has the necessary funds for a down payment

This form is typically required to submit a loan package for approval to mortgage underwriters.

A Verification of Income form is another standard document in a personal mortgage loan application package. A mortgage originator or assistant usually prepares it to confirm a loan applicant’s stated income. Verification of Income is used to ensure that a bank is basing its calculations on an applicant’s actual income and to determine whether the applicant can repay his or her loan.

Verification of income may be completed in one of several ways:

  • Self-employed individuals may be asked to provide tax returns (i.e., IRS Form 1040)
  • Those employed by a company or organization might be asked to submit W-2s or pay stubs
  • In some cases, a bank or credit union might contact the applicant’s employer to confirm income

Tracking Verification of Deposit & Income Forms

Verification of Deposit and Verification of Income documents are usually mailed between physical locations and offices. Mailed documents can be difficult to track without proper technology and exception reporting workflows.

That’s why some banks and credit unions turn to core-integrated document tracking software, such as AccuAccount, to improve their loan application workflows.

For example, AccuAccount can track that the Verification of Deposit form was mailed and when it was returned—and store a digital image of the document for convenient reference.

Loan Document Management Resources

For more information about document tracking and imaging in the banking industry, be sure to check out our extensive resource library with free spreadsheets, whitepapers, and eBooks.

Browse our banking definitions page for more terminology.

Explore more resources

Exception Tracking Cost Calculator

Exception tracking has many moving parts—from notice generation to recordkeeping and reporting. How much does it cost your financial institution each year? Find out with Alogent’s free calculator.
Read More »

Related articles

Tuesday 19 September 2023

From Data to Results: The Role of Personalization in Your Digital Banking Platform

One powerful strategy to enhance the user experience and drive engagement on digital platforms is through built-in contextual marketing. In the world of digital banking…

Learn More »

Wednesday 6 September 2023

[Playbook] Efficiently Managing To-Dos with Task Exceptions

Your financial institution is growing—more branches, more team members, more loan and account holders, and more follow-up. To keep pace with this complexity, you need…

Learn More »

Monday 28 August 2023

Exception Tracking: Is Now the Right Time to Upgrade Your Workflow?

Documentation and follow-up tasks for financial institutions to manage is commonplace—especially for banks and credit unions involved in commercial lending. Proactively tracking missing and expired…

Learn More »

Thursday 17 August 2023

[Playbook] Tracking and Resolving Recurring Document Exceptions

Proactively dealing with missing and expiring documents is a key component of an effective exception management strategy. However, that’s easier said than done when your…

Learn More »

Wednesday 9 August 2023

Six Steps to Maximize Your Financial Institution’s Digital Transformation Journey within the Digital Banking Channel

In today's rapidly evolving digital banking market, digital transformation and the adoption of cutting-edge, scalable solutions has become a necessity for banks and credit unions…

Learn More »

Tuesday 1 August 2023

Check Volumes are Declining, But Check Fraud is Rising: What’s it Costing your Financial Institution?

No financial institution – large or small – is protected from transaction or check fraud. And, the difficult reality for institutions is that fraud can…

Learn More »

Wednesday 26 July 2023

Boost Productivity at your Financial Institution with Enhanced Cold Storage

Cold storage systems can support numerous use cases at banks and credit unions. The phrase “cold storage” can be used to describe technology that manages…

Learn More »

Tuesday 18 July 2023

[Playbook] Interfacing Your Imaging System with eSign, LOS, & Other Systems

Your financial institution relies on a variety of technology to ensure efficient commercial lending operations—everything from loan origination systems (LOS) to eSign products. Wouldn’t it…

Learn More »