What does a SSA verification on a ssn# do for a mortgage lender?

The SSA Verification really has nothing to do with underwriting. It's a formality for the loan file, to verify the lender has a correct SSN for the borrower.

Its' a fraud prevention disclosure requirement.. The lender is trying to verify that the number you provided was a real number issued by the SSA and that it was issued to you. If you are using your real SS number, then you have no problems.. if you are trying to defraud the lender, they will find out.. As this is just one of many steps they take when trying to sniff out loan fraud. Lenders have subscriptions to various tools used to search the entire US to see if you own or applied for loan's on other properties.. They search government data bases to see if you owe the federal government, or if the government every paid out a claim on your behalf. They Validate your tax returns by obtaining 1040 transcript they get directly from the IRS.. and match it against the returns you provided to see if there are any discrepancies.. all in an attempt to find loan fraud. Yes,,, it's a formality.. but it has an underlying purpose.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893