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TransUnion will make an equity investment in FinLocker's approximately $20 million in Series A-1 financing round and an entrance into a commercial partnership agreement. The partnership will give borrowers the ability to collect and permission their financial information needed to secure a mortgage or other loans, according to a press release.
The partnership allows borrowers to secure a loan decision faster and make a home-buying offer equipped with a loan commitment from their lender ahead of time, according to the release. Borrowers will have access to resources that can help prepare them for the mortgage application process. Additionally, they will have a personalized financial health dashboard.
For lenders, having a more educated borrower will increase the efficiency of the application process, saving time and expense. FinLocker can also give lenders insights into consumers' actions and behaviors.
"A consumer’s personal information is the key to unlocking new economic opportunities," said Peter Esparrago, co-founder and CEO of FinLocker, according to the release. "However, the current processes for securing credit can make it difficult for consumers to leverage their data assets to their full potential. TransUnion is well-positioned within the financial services industry to partner with FinLocker to pursue these avenues of growth and bring a more streamlined approach to the loan application and approval processes for both lenders and consumers."
The process starts as consumers collect their information through FinLocker's personal financial management tool via desktop or mobile application. TransUnion will be responsible for packaging its lead generation and servicing solutions with FinLocker to provide updated credit and consumer information to loan originators and servicers, according to the release.
"Companies in the mortgage industry are driving a digital-first evolution by leveraging new technologies to create innovative products and experiences and this partnership helps us uniquely differentiate ourselves in the market," said Joe Mellman, senior vice president and mortgage business leader at TransUnion. "Buying a home is typically the largest purchase a consumer will make over their lifetime so it is essential for consumers to have all the information they need at their fingertips to secure a mortgage at the right time."