Mortgage underwriting software FundMore on Monday announced a partnership with end-to-end digital verification analytics platform VeriFast, with the intent to identify mortgage fraud early on through the use of verification software.
A spike in mortgage fraud — which has increased nearly 30% since quarter one of 2020 — prompted the security partnership.
According to the companies, lenders using the FundMore platform to originate mortgage loans can now take advantage of the new VeriFast functionality, which allows them to instantly verify applicants' digital ID, financials, and ability to service loans without leaving the FundMore platform.
VeriFast, which serves clients throughout North America, has also recently implemented optical character recognition (OCR) for bank statements and paystub uploads to ensure all applicants can verify their financials. To streamline digital communication, VeriFast uses a single-source application programmed interface (API) to seamlessly integrate banking data, payroll insights, tax transcript data and other necessary banking information.
"VeriFast is experiencing rapid solution adoption with mortgage lenders who want to digitize and streamline their pre-approval and underwriting processes," said Tim Ray, VeriFast co-founder. "Our partnership with FundMore will help automate financial and [identification] verifications. Together we are taking digital verification and lender security to a new level."
FundMore's automated Loan Origination System (LOS) interface already utilizes machine learning to streamline funding, reduce risk, and improve efficiency through analytics, which dovetails with VeriFast’s risk-free OCR program, the companies said.
"From day one I was impressed with VeriFast's deep expertise and technology," said Chris Grimes, CEO of FundMore. "FundMore now provides instant digital verification to streamline the mortgage process for our clients. Mortgage application fraud risk is a growing industry concern that needs to be addressed. Through this partnership, we continue to give lenders of all stripes the digital tools, automation and security they need to keep up with changing consumer demands and regulatory requirements."
