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Finicity, a Mastercard company and leading provider of open banking solutions, announced its one-touch Mortgage Verification Service (MVS), in hopes to make mortgage origination simpler for lenders who adopt its technology. According to Finicity, the solution allows consumers to permission data, quickly and easily, so lenders can verify assets, income and employment in a single interaction with borrowers that takes seconds or minutes instead of days or weeks. The verification is accepted by both Freddie Mac and Fannie Mae in place of cumbersome manual loan documentation.
While mortgage lending has rapidly moved toward a digital experience, the verification process has largely remained a manual, paper-driven process. By reducing the burden of manual methods of documentation, Finicity estimates it may be able to shave 8-12 days off the origination process for rapid loan closing.
Through Finicity Lend’s Mortgage Verification Service, Finicity’s open banking platform leverages high-value data available from financial institutions and payroll processors to provide accurate, real-time insights into a borrower’s current assets, income and employment. The solution offers flexible flows for different mortgage lending use cases — from refinancing to new purchases, qualified to non-qualified mortgages.
"With Finicity Lend, our ultimate goals are to help mitigate risk for lenders, create an improved consumer experience, and ultimately increase overall financial inclusion by helping borrowers better prove their creditworthiness," said Finicity CEO and co-founder Steve Smith.
The Finicity Lend Mortgage Verification Service is accepted by both GSEs as a valid demonstration of a borrower’s assets, income and employment.
"Freddie Mac has been at the forefront of advancing the digital mortgage experience that today's borrowers have come to expect," said Rick Lang, Single-Family vice president of Strategy and Integration at Freddie Mac. "Our data-driven strategy helps produce safer loans and reduces the paper chase so our clients can speed up underwriting and bring borrowers to the closing table sooner."
"At Fannie Mae, we’ve been pioneering the digital technologies that will make the borrowing experience faster and easier for borrowers," said Chuck Walker, vice president, Digital Alliances and Distribution at Fannie Mae. "Manually providing verification documents is a time-consuming and stressful process, so addressing asset, income and employment verification is central to moving the industry toward the ideal digital mortgage."