Unverifiable Information and Your Mortgage Loan

Yes, in fact it is a very valid reason. When a bank or mortgage company lends someone money, they do so based on the veracity of the information provided to them. If the lender's guidelines say that someone has to have a two-year job history, then the lender may ask for proof of that two-job history.

Furthermore, they can (based on the document called "Borrower Authorization" that they have people sign), double check the veracity of the information given to them by a borrower. So, if someone says on their application that they've worked for Acme Widgets for the last two years and the lender calls up Acme Widgets, who tells them "John Doe?? Who's that? We've never had an employee by that name," the lender would conclude that they are unable to verify the information and deny the loan.