It affords financial institutions an automated means to search and verify borrower assets, providing them as well as Government-Sponsored Enterprises (GSEs) with systematically-verified asset information for both the underwriting and securitization phases of the loan lifecycle. Moreover, it simplifies the loan application process for the consumer by providing a means to remove the burden of providing bank statements, which traditionally has added to the time it takes to close the loan.

Digitizing the verification of bank account details in seconds replaces an otherwise manual process that took sometimes weeks to complete, and was highly susceptible to fraud. Rather than depending on the borrower to accurately disclose and provide sufficient evidence of financials, Early Warning’s Asset Search and Verification Service leverages bank-contributed checking, savings, money market, CD, IRA account balance and transaction data to provide a cross-bank view of an individual’s liquid assets.

“Lenders are responsible for verifying many data points right before a loan closes or when sold into the secondary market, a process that has proven costly and time consuming,” said Ravi Loganathan, chief market development officer of Regulatory Solutions for Early Warning. “Our Asset Search and Verification Service for Home Loans enables this to take place immediately, saving time and money for all involved. It stands up an important utility for the industry under strict member oversight and controls per Early Warning’s consortium operating rules and also includes protections for the consumer under the Fair Credit Reporting Act (FCRA).”

Early Warning’s Asset Search and Verification Service for Home Loans extends benefits to all stakeholders involved in the loan lifecycle:

1. Lender: May receive Representation and Warranty Relief and documentation waivers from GSEs for meeting policy requirements to systemically verify assets, mitigates bank statement fraud risk, and removes manual steps for validation and verification enabling positive operational advantages to loan processing cycle time;
2. Borrower: Removes burden of providing documentation, ultimately facilitating faster loan decisions; and
3. Investor: Provides certainty on the borrower assets reported as well as creates better visibility into the quality of a mortgage and greater confidence in the purchasing decision.