Ever since Quicken Loans rolled out their Rocket Mortgage product, the mortgage industry has been playing catch-up. Potential borrowers watched advertisements touting direct-source verifications that allowed them to provide instant access to the information the lender needed – without having to source the docs themselves.
This type of instant gratification and service expectation is ingrained in today’s tech-driven society. If Quicken Loans could do this years ago, why hasn’t the rest of the mortgage industry figured it out?
The simple answer is that some loan originators and lenders have begun providing access to these services as a valuable addition to their lending process. But it often requires them to patch together several vendors in order to do it.
Not the most efficient setup for an LO.
The good news is that LOs who use Floify can leverage the numerous integrations the platform has with direct-source vendors, and combine their services into one efficient document management solution at the point-of-sale.
Lenders and originators of all types can order credit, deposits and assets, income, and employment verifications all from one single-access location, through providers you already trust.
And the even better news? Using these services has been proven to reduce processing times, slash cycle times, lower overall cost-to-originate a loan, and eliminate mortgage fraud. So much so, that Fannie Mae provides relief from reps and warrants for all components that are properly validated by approved vendors in their Day 1 Certainty program.
Check out all of the ways that Floify is helping facilitate better, more efficient digital lending practices:
Integrated Credit Reporting
Obtaining permission to pull a prospective borrower’s credit history is widely considered the first signal that the prospect is serious about financing a home, and you are at the least on their short list of possible originators to work with.
Floify has integrated with an extensive and growing network of credit reporting agencies so that loan originators can seamlessly order and receive reports within a single document management solution.
As of today, Floify has integrated with these credit reporting agencies to provide seamless ordering:
Using these connections, LOs can quickly order credit at any time from a Floify loan flow, or can configure their 1003 loan application to automatically pull credit upon the submission of the application. Reports are delivered back to the corresponding loan flow’s yellow bucket but remain invisible to borrowers and 3rd parties.
Assets and Deposits
All loan officers have heard or experienced the horror stories: Missing pages. Only one month of history. Unverified deposits.
Relying on borrowers to provide complete and accurate information can be a hit-or-miss proposition at best.
When you take advantage of Floify’s integration with Day 1 Certainty-approved asset verification provider AccountChek™ by FormFree, not only can you avoid simple yet costly human errors but you also get to enjoy the efficiency of instantaneous document gathering.
AccountChek™ has been shown to reduce processing times by up to 90 minutes per file and can shave days off your loan cycle.
Originators using Floify have the option to automate the verification process so that it occurs once a prospect submits their loan application – getting you one step closer to an approval as soon as you walk through the door – or to manually make the request from the corresponding loan flow.
Income and Employment
You’ve established that the prospect pays their debts and that they have enough assets on hand to make their down payment. Now you need to verify that they have a stable employment situation that provides the income necessary to purchase the property they desire.
Traditionally this part of the process required obtaining a 4506-T, submitting to the IRS, and waiting for the tax transcripts to come back while simultaneously contacting the employer directly to have proof of employment established. Over the last few years, the 4506-T process has become more digital via the IRS but still requires the LO or processor to go to yet one more location to order the necessary documents.
This manual workflow can be expedited by leveraging services such as Equifax’s The Work Number, a Fannie Mae Day 1 Certainty-approved vendor, which has been integrated into the Floify platform.
Using this service from within Floify not only makes ordering VOE and VOI a one-stop shopping experience, but also aids in maintaining an organized loan file by delivering transcripts and reports right back to the borrower’s loan flow.
When all of these verification services are used in concert, a loan file can be nearly completed in just a few days with little required of the borrower, and underwriters can approve loans with confidence knowing that the information provided to them is from a trusted source.