Finicity, a leading provider of real-time financial data access and insights, announced today the release of its new Verification of Income and Employment (VOIE) solution using patent-pending TXVerify™ technology that will speed up borrower verifications and further advance the industry shift toward a fully digital experience.
The Finicity VOIE solution digitally extracts a borrower’s pay statement data from the paystub and then cross-verifies that key data with their income transactions from their financial institutions. Enabled by its TXVerify technology, this detailed vetting process creates a real-time picture of an applicant’s income and employment for fast, accurate reports. The solution does this by leveraging the highest value data - direct from banks - along with a scan, photo or PDF of a borrower’s paystubs. This process significantly shifts the current paradigm from a mostly manual process to one that is fully digital, all while reducing fraud and increasing confidence in the underwriting process.
“Our VOIE is expected to become the new gold standard of income and employment verification,” said Steve Smith, Finicity CEO. “We know it will be met with fast adoption by key industry players who aim to be on the cutting edge of lending technology. With VOIE building upon our current Verification of Assets solution, lenders will now be able to use Finicity as a one-stop-shop for digital verification.”
Legacy solutions have been marked with low success rates and at times return outdated information. Such solutions rely on payroll data supplied by employers, many of whom do not report information frequently. Additionally, employers that report data usually represent only the largest enterprises, while the majority of Americans work for small to mid-sized businesses. Finicity’s VOIE technology accesses real-time data gathered directly from an employee’s bank accounts. Finicity uses direct deposit payroll data, which represents over 90% of American workers, to dramatically improve the success rate of an automated income and employment verification. While the success rate for existing automated solutions hovers around 15% to 25%, Finicity’s VOIE solution is anticipated to provide successful income and employment verification coverage of over 70%. Digital verifications can shave as much as 12-14 days off the origination process, helping to push the industry to a rapid closing with increased accuracy, while improving profitability.
While available to lenders servicing all credit decisioning markets such as auto, personal loans and credit cards, the Finicity VOIE solution was designed to stand up to the highest levels of scrutiny and stringent requirements of the U.S. mortgage market. Because this market involves high dollar decisioning, strict regulatory oversight, and demanding investors - including government-sponsored enterprises (GSEs) - it is considered the ultimate proving ground for credit decisioning processes and products. Finicity’s VOA report and data already power the vast majority of digital asset verifications in the mortgage market due to their high data quality and certified connections to the broadest range of financial institutions. Finicity’s VOIE solution builds on this technical and data leadership track record.
Working with Freddie Mac
Freddie Mac Loan Product Advisor® asset and income modeler (AIM) leverages data from third-party service providers, like Finicity, to automate the manual processes of assessing borrower assets and income to simplify the loan origination process, drive efficiency and improve the experience for lenders and borrowers.
Today, AIM leverages Finicity technology to obtain data for borrower asset assessment and direct deposit income assessment (limited release). By adding the Finicity VOIE offering to AIM (limited release), it augments direct deposit information with paystub data to further help expand a lender’s ability to more easily assess borrower capacity, reduce their documentation burden and save time and money.
“Adding Finicity’s VOIE solution is the next step in the evolution of AIM,” said Kevin Kauffman, Senior Director of Technology Integration at Freddie Mac. “And our partnership with Finicity has helped to create a waterfall-like approach by adding paystub data to our AIM capability using accurate and verifiable data that meet our underwriting standards. This means more opportunities for representation and warranty relief and greater cost savings for lenders all while delivering a better lending experience to borrowers.”
What the Industry is Saying
Finicity customers and partners are already weighing in on VOIE:
“We are always looking for ways to simplify the mortgage process, taking away the apprehension that can come with a complicated financial transaction,” said Heather Lovier, Executive Vice President of Client Experience for Quicken Loans. “To help achieve this, we create game-changing innovations and engage with forward-thinking partners like Finicity. VOIE is a critical next step in the evolution of the mortgage process and we look forward to seeing it more widely implemented throughout the industry.”
“Consumer permissioned data, like Finicity’s new VOIE and Experian Boost, empowers consumers to take control,” said Michele Bodda, general manager at Experian Mortgage. “This innovative digitization of data and analytics is an important step in modernizing the mortgage process and enabling a solution that helps streamline the process for more borrowers than ever before.”
“Source validation solutions are increasingly important for our customers who seek faster, more convenient digital application processes,” said Parvesh Sahi, senior vice president of Business Development for Ellie Mae. “In July we announced that Finicity’s digital Verification of Assets (VoA) solution was available through our Encompass Digital Lending Platform. With their launch of their VOIE solution, they are further improving digital verification solutions for a faster and more accurate process.”
“We’re very excited to offer Finicity’s new VOIE solution to our lender clients. This solution will provide a variety of benefits for both lenders and borrowers,” said Michael Salichs, president & COO of MortgageHippo. “Not only will it reduce manual work and fraud for our lenders, but borrowers will see faster closing times, less frustration and greater accuracy.”
"Digital lending solutions are increasingly important for lenders who seek faster, more convenient application processes," said Matt Hansen, CEO, Simple Nexus. "In the future, this process can help borrowers through a verification experience that is 100% digital without any of the tedious manual labor required today. Fincity's Verification of Income and Employment solution helps lead the industry much closer to that goal."
“We have seen great success over the past year in offering a consumer-enabled digital asset verification as a key part of simplifying the mortgage application and approval process,” said Steve Majerus, president of Synergy One Lending. “Income and employment is the next step in digital verifications and we like the innovation Finicity is demonstrating with the introduction of their solution.”
“Fincity’s VoIE program is a great leap forward in the digital verification of income and employment,” said Patrick Gardner, principal at Vellum Mortgage. “Not only is the borrower experience faster and simpler, it improves processing and underwriting times as well. Partnering with Finicity has been critical in Vellum’s goals of implementing technology that delivers results for our customers.”