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The traditional mortgage process can feel cumbersome to borrowers and loan officers, especially when the digital solutions dominating our lives have us accustomed to fast, convenient, and simple processes. Slow and complex mortgage workflows are more than inconvenient and unfortunately all too common. They require input at every step, back and forth between multiple partners even for some of the simplest tasks. Traditional, manual mortgage processes can also hinder lenders from reaching the full potential of their organizations.

Fortunately, Finicity Lend’s Mortgage Verification Service (MVS) enables lenders to build a simple, streamlined mortgage verification experience with the flexibility to adapt to different mortgage lending use cases and enhance the lending experience for all.

The Drawbacks of Yesterday’s Mortgage Process

Gathering documents, calling employers, and conducting manual verifications add time to the origination process and can be a source of stress for prospective borrowers who have to hunt down paperwork. All that paper shuffling can also increase the chance of fraud and risk for lenders. High-friction lending experiences are frustrating for borrowers who have become accustomed to digital experiences in all aspects of their lives.

And while adopting a digital mortgage solution can simplify this otherwise cumbersome process, adapting digital solutions can be daunting when your organization is accustomed to a particular traditional workflow. Do you have to ditch everything about your current process? Are the returns of a digital mortgage solution worth the time and resources to transform your organization?

Let’s find out.

Finicity MVS: The Simple and Flexible Mortgage Verification Experience

Finicity Lend’s Mortgage Verification Service addresses these problems with traditional mortgage lending and the concerns lenders face when confronted with the thought of changing their workflow. It comes down to two key components that have been core to MVS’s development from the beginning: simplicity and flexibility.

MVS Simplicity

Thanks to Finicity’s open-banking platform, MVS can deliver the financial data necessary for accurate, GSE-accepted, reliable verification of assets, income, and employment. And it gets better: MVS enables lenders to receive the verifications they need with only a single permissioning experience by the consumer, from multiple data sources. Even adding paystub data to bank and payroll data for a more comprehensive picture of income can still only take one permissioning experience that feels right at home in the digital lifestyle of today’s borrowers.

Data-driven verifications cut the risk of manual verifications and toss out the paper chase that came with ‘paper-based’ (from actual paper to digital documents) processes. The all-in-one, one-touch experience further streamlines and simplifies the lending process and improves the overall experience for both borrowers and lenders, potentially cutting up to 12 days off the origination timeframe.

MVS Flexibility

Every lending scenario is as different as the borrowers that come to you. These unique scenarios mean that there can’t be a one-size-fits-all digital mortgage solution. It needs to be flexible. MVS is flexible enough to adapt to unique mortgage lending use cases and workflows and balance the appropriate level of borrower friction, optimizing the overall process.

With MVS, lenders can request only the data they need to validate income, assets, or employment, or they can request all the verifications at once. No need to sort through unnecessary information to assess a borrower’s risk. For example, a refinancing may not require the asset verification necessary with a new home purchase. MVS provides what you need, when you need it, and in the best, most simplified way with clean, easy-to-read reports.

And while MVS’s one-touch experience is ideal, some use cases or customer experiences require more than one permissioning experience with the borrower. Some consumer flows, for example, only require asset data in one step, and then request income data separately. Or, your flow may attempt a complete verification from transactions only, and you may return to the borrower for a second permissioning experience for paystub data later. MVS can as easily adapt to these two-touch scenarios as the one-touch experience, enhancing lender flow rather than replacing it, and allowing lenders to balance friction with borrowers on their own terms.

Regardless of the permissioning experiences required for accurate and reliable risk assessment, borrowers and lenders will always enjoy a streamlined, fast, secure permissioning process through Finicity Connect for less friction and more time saved. Thanks to this flexibility, MVS helps lenders balance what you believe is the best experience for the borrowers with the tools you need to get the highest possible verification success rate.

With Finicity’s MVS, you can enjoy the benefits of a streamlined, simplified, and flexible digital mortgage experience without sacrificing what makes your lending process unique to your organization. And to top it all off, you get the most accurate data, courtesy of open banking and consumer permissioning. Enhance your lending with Finicity Lend’s MVS.

The mortgage application process should be easier. It should be more accurate. It should involve less risk and less fraud. It shouldn’t be a slog for borrowers or for lenders. It should be as convenient and streamlined as we’ve come to expect from other modernized, digital experiences. 

Transforming the entire underwriting process is a massive undertaking. And while Finicity already provides solutions across all the primary segments of mortgage lending, today we’re reaching another milestone by streamlining the verification of assets, income, and employment into a one-touch, GSE-accepted experience. I’m excited to introduce Finicity Lend’s Mortgage Verification Service (MVS), the faster, more accurate, more empowering verification experience for both lenders and borrowers.

What Is MVS?

Mortgage lending underwent a historic transformation in 2020. Problems that had been minor cracks in the mortgage lending experience became chasms as lenders had to rapidly adapt to physically-distanced workflows. But despite the COVID-19 pandemic, ensuing economic fallout, and record-breaking volume—which, while temporarily obscuring them, does not eliminate the cracks—certainly accelerating the need for a new mortgage experience, that need was already apparent. 

Paper-based mortgage processes take more time—something many lenders are already lacking with today’s high volume—and they’re more prone to fraud. Slower, less streamlined solutions also reduce organizational agility, preventing lenders from keeping pace both when the market is booming and when the market again normalizes. And the high-friction paper-chases are annoying for borrowers that are already acclimated to fast, convenient, digital solutions. 

We wanted to deliver a mortgage lending experience that exceeds the expectations of today’s borrowers while also enhancing outcomes and agility for lenders and their stakeholders. That’s why we designed MVS to deliver a one-touch, GSE-accepted digital verification of assets, income, and employment. Now you can complete all necessary verifications in one seamless process. It’s a fast, secure, anytime-anywhere experience that gives the borrower control over their financial data while also providing the lender with a real-time, accurate picture of the borrower’s financial health. 

MVS is powered by Finicity’s open-banking platform. This means that mortgage lenders get access to extended lengths of real-time data, analyzed and categorized thanks to advanced data intelligence. We also assure the most accurate data and keep the consumer at the center of the data-sharing experience with clear transparency and the ability to dispute reports. Access to reliable, real-time, multi-sourced, and even cross-verified data enables the most accurate verifications, setting you on your way to get rep and warranty validation from GSEs and investors. 

And because every lending use case and process is unique, we’ve designed MVS to be flexible and accommodate everything from refinancing to new purchases, including both qualified and non-qualified mortgages. We’ve also made it easy for mortgage lenders to integrate MVS into their workflow with several flexible integration options.

All of these features come together to build a consumer-centric lending experience that improves ROI for lenders.

Why Should Lenders Use MVS?

MVS is more than a product, it’s a partnership with Finicity that enables lenders to benefit from our open banking platform and our market-leading, secure connections to financial institutions. Through those connections, lenders can get the accurate data necessary to verify assets, income, and employment, and enhance their overall decisioning and underwriting processes. And with GSEs tightening their rep and warranty relief policies due to COVID-19’s impact on consumer income and employment, lenders will need the most reliable data from the most reliable sources.

MVS enables a digital mortgage experience, allowing lenders to reap the benefits that come from digital streamlining. In fact, validating assets, income, and employment digitally can cut up to 12 days off the origination process. MVS takes digital streamlining even further by completing these verifications with only a single borrower interaction. You can then refresh those verifications at close at no cost and without reengaging the borrower. With MVS, you complete more originations in less time—time that’s crucial for lenders to remain agile in a crazy, high-volume year like this. More time opens room for more originations and more commission.

The convenience of digital verifications and the simple, streamlined consumer permissioning process also enhances the lending experience for borrowers and helps them leave more satisfied and more likely to refer their lender to friends and family. MVS’s seamless and customer-centric digital experience enables lenders to distinguish themselves, especially against digital laggards, and gain a competitive edge.

We’ll also set you up for success with Finicity’s Adoption Best Practices training so you can hit the ground running and start reaping the rewards of a streamlined, digital mortgage process. 

With MVS, everybody wins. 

Don’t settle for yesterday’s mortgage lending experience. You deserve better. And so do your borrowers. Use Finicity Lend’s Mortgage Verification Service to build the foundation of your enhanced mortgage lending experience. Find out how to integrate MVS into your mortgage lending process and to learn more about how Finicity provides other mortgage solutions in prequalification, underwriting, funding enablement, secondary quality control, and servicing.

One thing we’ve learned this past year – if we didn’t already know – is how we pay, get paid, or otherwise move money, is changing. One almost wonders what the fate of paper money will be in the future. Until that is sorted out, we’ll continue exploring ways to improve the money movement process. That’s where open banking comes in. Through open banking we’re able to introduce new tools that secure and simplify the money experience. One area enhanced by open banking is Automated Clearing House (ACH) payments. 

To that end, we’re very excited that industry innovator SWBC has chosen Finicity Pay™ for instant account verification of online Automated Clearing House (ACH) payments. This partnership simplifies the payment process while also satisfying Nacha’s new web debit rule, planned to take effect March 2021.

NACHA’s New Rules

Currently, ACH Originators of web debit entries are required to use a “commercially reasonable fraudulent transaction detection system” to screen web debits for fraud, according to Nacha’s website. This existing screening requirement will now be strengthened to make it clear that “account validation” is a solution designed to enhance fraud protection.

Specifically, originators of debits are responsible for validating accounts to ensure the account is legitimate and open prior to the first use of an account number or after changes to the account number by a customer. While the rule doesn’t require the account owner to match or be validated, Finicity Pay also enables companies to determine the account owner on file with the bank for heightened validation and further fraud prevention.

While there are many ways to validate accounts, Finicity’s open banking platform makes it easy to receive validation in real-time thanks to APIs and direct connections with financial institutions. Web debit originators don’t need to wait on manual verification, microdeposits, pre-notifications or any other service for dependable, accurate account verification.

How Finicity Pay Fits In

Finicity Pay will verify the essential account details, owners, and balances that are needed to charge, get paid, or set up an account with confidence.  As a complete suite, Finicity Pay enables payments and validates funding sources. It can also seamlessly verify loan account details, including student loans, to detect eligibility for refinancing, loan consolidation, or to support employer student loan repayment and other benefit programs. This means that Finicity Pay both satisfies Nacha’s web debit rule but also speeds up the payment validation process and enhances fraud protection. Finicity and SWBC are Nacha Preferred Partners, recognized for offering products and services that align with Nacha’s core strategies to advance the ACH Network.

SWBC provides financial institutions, businesses and individuals a wide range of services, including insurance, mortgages, wealth management, employee benefits, among others, and is a valued addition to our list of providers.To read more about this announcement, please read the press release here. And to learn more about Finicity Pay, check out our website.

I’m very excited to announce the newest addition to our open banking platform: Finicity Pay™, an integrated solution set that enables payments, account creation, and fraud mitigation. 

The move to digital continues to accelerate in the payment industry. Banks and fintechs are under pressure to transform processes across the payments ecosystem. They need to process a greater number of payments while giving consumers more flexibility without compromising security.

Finicity Pay transforms these challenges into opportunities for financial service providers to exceed the expectations of their digital consumers. Here’s how:

Enabling Payments for Today’s Digital Economy

Finicity Pay meets the needs of digital consumers and the digital payment ecosystem by enabling Finicity clients to verify the essential account details, owners, and balances that are needed to charge, get paid, or set up an account with confidence. With Finicity Pay, you can enable payments and validate funding sources. You can also seamlessly verify loan account details, including student loans, to detect eligibility for refinancing, loan consolidation, or to support employer student loan repayment or other benefit programs.

Instant Verification of User Data

Whether it’s setting up an account, enabling payments, or just verifying you’ve got the right person — Finicity Pay’s integrations allow for accurate, real-time, consumer-permissioned access to account details, such as the account owner name(s), address, balances, and account and routing transit number. Instant verification allows you to  get money moving faster than ever before. 

It gets better. Finicity Pay satisfies NACHA’s 2021 requirements for digital ACH transactions allowing for stronger anti-fraud controls. And, Finicity Pay’s data solutions enable faster, more confident transactions.

Increasing Security, Reducing Risk

With instant data verification, users can be confident they’re paying, charging, and setting up accounts with the right person or third party application. Finicity Pay provides all the information needed to help get payments and transfers sooner, while reducing the risk of fraud.  

We look forward to seeing how you’ll use Finicity Pay and its open banking capabilities to exceed your customers’ expectations. Do you have a question about Finicity Pay? Send us an email.  Download our Finicity Pay overview PDF. Or, request a demo online, to see Finicity Pay in action today.

Today, we at Finicity are  pleased to announce the launch of Finicity Lend™, which brings in several new data services and capabilities to the Finicity open banking platform, creating a more expansive, integrated solution. This solution set enhances the current credit review system while also leveraging the tremendous advantages of open banking and consumer-permissioned financial data to better assess credit worthiness going forward. Fincity Lend’s new data services and capabilities include: Cash Flow, CRA Statements, CRA Transactions, Scoring Attributes, and use of payroll data enhancing our income and employment verifications.

Finicity Lend ensures greater efficiency and accuracy, better risk management, real-time insights, and enhanced credit-decisioning throughout the lending process. Our team wants to capitalize on credit decisioning and lending to drive forward more consumer-centric financial data and services, especially in this new era of open banking.

Cash Flow Analytics Offer More Context

The new Cash Flow service delivers a broad set of cash flow attributes to provide lenders with a more accurate and realistic view of a small-to-medium business (SMB) or individual’s creditworthiness. Utilizing the advanced data intelligence of our open banking platform, this digital service automates and streamlines the capture and delivery of data that otherwise requires significant combinations of manual and automated processes.

CRA Statements and Transactions Data Services Put Power in Consumers’ Hands

Lenders use all sorts of data in decisioning processes. With Finicity Lend, borrowers can easily permission lenders to use their financial data from their accounts  to verify information and garner insights for better decisioning. Finicity Lend delivers this data in accordance with the federal Fair Credit Reporting Act (FCRA) compliance requirements, ensuring that Finicity’s consumer-permissioned data meets the legal requirements of the FCRA. With intuitive permissioning and FCRA compliance, Finicity Lend offers the most consumer-centric and consumer-friendly approach to using  next gen financial data within the credit-decisioning process.

Payroll Gets a Front Row Seat

To further assess creditworthiness, Finicity has also added Automatic Data Processing (ADP) as the first of many new payroll data sources to our open banking platform. This supplies a connection to the payroll provider that offers direct-from-the-source data. Consumer-permissioned income and employment details are key information for a lender to obtain and the integration of ADP allows for easy, transparent access to this vital data. And it reduces the friction involved in manual verifications.

Digital Transformation Drives Open Banking

The goal of Finicity Lend is to make the credit review process faster, more accurate, and more efficient for lenders who offer all kinds of loans, including mortgage, auto, small business, personal, and others, to provide a more transparent and accurate view of a person’s creditworthiness.

In a recent survey that Finicity conducted, 82% of consumers called for an updated credit-decisioning process, stating they believe the current credit review process and criteria need to change to make it easier for responsible borrowers to prove creditworthiness. A majority of consumers stated that they would be willing to share current income information, payment history for utilities and other services, as well as rent history to give lenders a more accurate view of their financial standing and ability to pay back loans.

The new wave of digital transformation and open banking standards in the US are bringing about much needed change that Finicity is ready to tackle through our open banking platform.

To learn even more about the new Finicity Lend solution set, be sure to check out our virtual booth during LendIt Fintech USA 2020 from Sept. 29 – Oct. 1, or request a demo online.

Consumers are more empowered to shape their lives and lifestyles using a vast array of digital tools that are now available at the tap of their phone screens.

While digital tools and solutions have made it possible for consumers to be better informed about their credit scores and profiles, they haven’t been able to directly influence their score. Until now.

The recently announced UltraFICO™ Score, created using consumer contributed data in conjunction with FICO, Experian and Finicity, is a landmark event in credit scoring.  It’s a fundamental shift in the collection of credit related data that brings the consumer directly into the scoring process. In short, it further empowers consumers to use their personal financial data for their benefit. Read more about the UltraFICO™ Score in the announcement here or in the The Wall Street Journal here.

The process starts with a consumer securely permissioning the use of their financial data that is commonly found in monthly statements of checking, savings and money market accounts.  That data can be used to provide visibility into financial management behaviors that may improve their score and provide better access to credit. The UltraFICO™ Score includes factors such as length of bank account history and consistency in maintaining balances, in addition to traditional credit report information.  

This information wasn’t previously available to be used for scoring and its inclusion now allows consumers to provide reliable, historical data for a better informed credit score.  In some cases it provides enough data that those previously unscored or under-scored can be scored for the first time. Millions of consumers with limited credit history will benefit from improved access to mainstream financial products.

Consumers are now able to influence their credit score through their demonstration of everyday sound financial management  habits. They can put their financial data to use in finding lower interest rates or better credit offers and in some cases can become credit-worthy for the first time thanks to the extra data found in their checking, savings and money market accounts.