Lenders can speed up loan approvals by days and protect against claims and collateral claims by partnering with Truework to verify borrower income and employment using Fannie’s Desktop Underwriter validation service. Mae.
This is according to San Francisco-based Truework, one of the few vendors to be a Fannie Mae-licensed income and employment validation report provider.
â€œReceiving approval as an Authorized Reporting Provider for Fannie Mae’s DU Validation Service reinforces our commitment to better serve the mortgage industry and help consumers across the country close home loans faster,â€ said Truework co-founder and CEO Ryan Sandler in a statement.
Fannie Mae says its DU validation service can â€œtransform your business workflow,â€ using data from third-party vendors to validate income, asset and employment information entered by the lender into DU.
The validation service offers borrowers a streamlined experience, for example eliminating the need for an IRS 4506-T form. Additionally, Fannie Mae gives lenders â€œday one certaintyâ€ that they will not face any representations and warranties claims regarding the accuracy of the borrower’s income, assets or employment status.
â€œDay one certainty is extremely important to customers and we’re excited to see the impact this new offering will have on lenders and borrowers,â€ said Sandler.
Other suppliers currently authorized by Fannie Mae the providers of income and employment validation reports are Blend Labs, Equifax Mortgage Solutions and Finicity.
Truework claims to be the first reporting provider authorized to verify income and employment data from third-party providers, and one of the first to offer automated income and employment verification reports.
Truework’s ‘Instant Verification Network’ connects to payroll providers including Gusto, Zenefits, Paylocity, UKG and BambooHR, enabling it to verify income and employment data for over 35 million employees Americans.
This means that Truework’s partnership with Fannie Mae “effectively expands the pool of borrowers whose cases may now be eligible for Day 1 certainty when mortgage lenders use Truework to process employment and income verifications,” he said. declared the company.
“By adding more options to automate income and employment verification through the Desktop Underwriter validation service, we are enabling a faster and more efficient loan origination process that creates a better experience for borrowers,” said Chuck Walker, vice president of digital alliances and distribution, said in a statement.
Truework Claims Lenders can also reduce the length of the loan cycle by up to 12 days between application and closing, based on the typical 40-45 day process for many lenders who do not use the validation service. OF.
Truework, which announced an integration with ICE Mortgage Technology’s Encompass loan origination platform in June, uses a â€œwaterfall approachâ€ to derive income and employment data.
If Truework cannot verify a borrower’s income and employment through their instant network, of the society Identification process can retrieve information for gig workers and other 1099 employees who share employment and income information directly from their payroll provider. If neither of these approaches works, Truework employs a outreach team which deals with manual checks.
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