SAN FRANCISCO, CA / ACCESSWIRE / September 9, 2022 / Real estate is booming across the country. Not surprisingly, so is the lending market.
According to National Mortgage Professional, digital lending alone is expected to top $20 billion by 2027. However, the lending process can be tricky to navigate for both sides of the coin.
What makes it so complicated? Lenders need to be able to assess a potential borrower's ability to repay a loan. There are numerous ways to determine if a prospective borrower is an acceptable risk. One of the more common methods is to verify the applicant's income and employment verification.
Traditionally, this process requires the lender to do most of the legwork to corroborate an applicant's income and employment information. But it's a process that's often fraught with stumbling blocks because getting income and employment information from employers to lenders has been historically difficult, expensive, and time consuming.
What types of issues get in the way of a seamless transfer of information? For one, many employers aren't set up to quickly and accurately verify workers' data. They may not even know what data they should-or legally can-release to a lender. This can cause hiccups at best. At worst, sharing too much could lead the employer to run afoul of regulations and laws.
Another common obstacle in the income and employment verification exchange process involves a lengthy time commitment. Specifically, lenders' team members may not have the time or bandwidth to hunt down verifications. The longer it takes to verify someone's income and work history, the greater the likelihood the applicant will seek a loan elsewhere.
Despite these issues, many lenders still want to base their approval decisions on applicants' income and employment data. They just need a better way. To help them speed up the experience and win more customers, many partner with income verification services like Truework.
The Truework Method for Exchanging Sensitive Information
What makes the Truework workflow unique? First, the borrower submits a loan application to the lender. The lender then starts a request with Truework to confirm the borrowers' income and employment, a process which is required for mortgage lending, and is becoming more common in auto and consumer lending.
At this point, Truework's waterfall approach to verification comes into play. If the borrower is already one of the millions of employees instantly verifiable through Truework's pipeline, or through their payroll partners' systems, Truework sends the borrower an email. The email asks if it's fine to release the consumer's financial information to the lender. A "yes" response allows the lender to get the verified income data and approve the loan in minutes.
What happens if a borrower's employer or payroll system isn't with Truework? The borrower has the option to log into their payroll provider and share the income and employment data directly from the source. If neither of these methods have provided verification data, Truework can pivot to manually collecting income and employment verification through a call-center based service called Smart Outreach. No matter which process works best for each borrower, the goal is to make the experience as quick and easy as possible.
Staying True to Both Borrowers and Lenders
As a verifier, Truework may seem like it's mainly a vehicle to serve lenders. But on closer inspection, it's just as valuable for borrowers. Below are some of the differentiators that benefit the parties typically involved in income and employment verification.
1. Only "need to know" information is exchanged.
As noted above, many employers put their reputations in harm's way by giving too much employee information to lenders. Additionally, they may be tempted to transport the information via unsecured portals like unencrypted email or texts.
Truework stays on top of details such as what needs to be in Proof of Employment letters. The company can create and disseminate these types of documents based on local, state, and federal rules.
2. The approval process is tightened.
Borrowers can't wait forever for a lender to make its approval or denial decisions. Consider the mortgage application process. Many borrowers apply with more than one lender to compare rates. If they find a home and want to make a bid right away, they may go with the first "yes" they receive.
Truework shortens the time that lenders need to conduct due diligence. By removing this friction point, lenders have a better chance of converting applicants. At the same time, applicants with attractive credentials may be presented with equally attractive rates.
3. Verification responsibilities fall to one party.
Lenders are strapped for labor just like organizations in so many other sectors. It can be hard to keep up with verifications, even with the help of software. Truework takes on all verification tasks and removes this chore from lenders' plates.
Though borrowers don't always participate in verification, they may feel the need to call past employers if the process isn't fast. Again, Truework's ability to take care of everything removes them from having to endure extra legwork.
4. Truework is experiencing an impressive growth pattern.
It's always a good sign to see businesses that embrace continuous change. Though Truework has carved out a stronghold in its marketplace, it hasn't stopped innovating. That's one of the reasons the company was recently able to raise an additional $50 million in Series C funding.
Borrowers and lenders can feel secure knowing that Truework is on a path of constant improvement. They also can expect to see Truework's proprietary systems and solutions leveraged for other use cases.
Lenders will always want to make sure that the applications they receive are accurate. Truework makes it much easier to confirm employment and salary details without slowing the lending process down.
About: Truework is re-engineering the credit system with consumers at top of mind. Putting individuals in control of their own personal data, Truework provides an API-enabled platform for income and employment verification that is secure, efficient, and precise. Using Truework as a Consumer Reporting Agency operating in compliance with FCRA, banks, lenders and background check providers can verify any U.S. employee. Through partnerships with payroll providers such as Gusto, Zenefits, and BambooHR, Truework has the second-largest instant verification network with over 35 million employees. To learn more, visit www.truework.com.
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SOURCE: Truework