Not much has changed when we speak of the mortgage industry’s underwriting and loan approval process. Sad to say, it has not gone past its “stone age” era.
In tune with today’s advancements in information technology, Experian with its partner, Finicity, aims to take the mortgage process into a new digital era with the “Digital Verification Solutions”.
This can be a game changer for many in their lending journey. It will eradicate the need to do tedious paperwork. Manually request for documents, and printing and faxing them to the lender will no longer be needed.
The loan process that usually takes more than 70 days to approve will be shortened. Also, the financial capital in processing these mortgage may decrease significantly.
It has Major Benefits, Finicity Says
This drive towards automated mortgage has a lot of major benefits, according to Finicity. It greatly simplifies the process for consumers. With just a few clicks on an application, a borrower can give the lender digitized documents that contain all the needed information for income and assets verification. And because this information is real-time and bank validated, it eliminates the possibility of altered data. This means lesser fraud for lenders.
As previously mentioned, real-time & digitized verification can speed things up for both the borrower and the lender. While borrowers no longer need to go through the onerous task of printing, scanning, e-mailing or faxing needed data, loan officers, also, no longer have to chase down borrowers for additional documents or second requests.
Their Verification of Assets (VOA) Report will access the borrower’s savings and checkings accounts, as well as, their retirement investment and brokerage accounts. This report does not only verify the account owner, it analyzes the data and includes details such as the average balance of these accounts, and the minimum and the maximum balance history. It also alerts the lender for any large transactions, either deposit or withdrawal.
The digitized Verification of Income (VOI) Report gives access to information about the borrower’s income for the last 24 months. It shows his/her average monthly income, the income trends and how often this money comes in.
Digitized Verification Will Help More Borrowers
As per Experian, this new technology can possibly help those who have limited or have no credit history get approved of their mortgage loan applications.
The problem of this group of people is the difficulty in establishing the “ability to repay” their loans due to the insufficient credit information or the lack thereof. This new methodhopes to make the verification process easier for these type of consumers by going through their savings and checking accounts, utility bills, and other payment obligations.
Around 25% of Americans have a limited credit history or none at all.
The Consumer is Always in Control
Because all these information are highly confidential and contain important details, the borrower is always in control. The data and reports can only be accessed with the borrower’s authorization making it safe and secure.
Experian’s goals it to improve the consumer’s mortgage journey through this digitized verification method.
Experian is one of the leading credit information services group in the country. Its partner, Finicity, is a global financial technology industry driven to make financial software innovations.
