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Mortgage, Open Banking

Finicity Makes the 2018 HousingWire Tech 100

HousingWire just announced their 2018 Tech100, and we at Finicity were very happy to be included. And while being on the list is a highlight for us, what we are really excited about is the future of lending. The HousingWire list is a great reflection of where the world of mortgage lending is headed. Simply put, it’s going digital.

What Does the Future Look Like Today?

The future will be about speed, convenience and accuracy. With a digitally driven process both lenders and borrowers will have a radically improved experience. One that will be much faster and more pleasant. And because a digital process will have access to more and better data, decisioning and insights will be more accurate.

The Tech100 reflects a maturing digital ecosystem where lenders and borrowers will have everything they need at their fingertips.  Probably quite literally as access will be driven by mobility and cloud-based solutions. Finicity is a player in the ecosystem as well as a beneficiary.  Through the ecosystem, we are broadening our ability to deliver data solutions to lenders either directly through an API to their internal systems or through an LoS, PoS, or a reseller.  

The HousingWire Tech100 also highlights this interdependence of the ecosystem. Finicity wouldn’t be as efficient in delivering its digital tools without other mortgage lending ecosystem players of one type or another. Each of these digital innovators, such as Fannie Mae, Ellie Mae, Black Knight, MortgageHippo, Advanced Data and others are helping facilitate a digital mortgage experience. We’re fortunate to call many of them, as well as others soon to be announced, ecosystem partners working together with Finicity to deliver rapid verifications or even working together on new solutions.

“Finicity is rapidly moving the industry towards an all-digital verification process”

Lenders are already beginning to see a difference as they transition to digital processes and remove antiquated practices that required time, focus and lots and lots of paper. Quicken Loans is a great example of a digital innovator (or should we say disruptor). They have become the nation’s largest mortgage originator in the last quarter of 2017 thanks in part to their “end-to-end” digital mortgage solution Rocket Mortgage and a relentless focus on improving the customer experience – which they realize will be digitally driven.

Lenders and financial institutions are discovering just how liberating digital processes can be, even if they’re only using digital verification solutions on top of their legacy systems. Asset, income, and employment verification can save lenders up to 20 days of origination time, which equates to a 36.5 percent processing cost reduction according to Fannie Mae. This frees up loan officers to focus more on customer satisfaction by providing the best experience possible, while also being able to process more loans.

Finicity has not only improved the process of verifying assets – using data direct from financial institutions gathered in real-time, but it has improved the benefits of doing so by providing reports as a registered Consumer Reporting Agency (CRA) that adheres to FCRA requirements and is subject to compliance guidelines. As a CRA we provide the consumer with a channel to better understand their reports as well as a channel for disputes as needed. We believe this is important in providing the most consumer friendly experience.

Finicity is currently the only data aggregator who is an authorized report supplier for Fannie Mae Day 1 Certainty verification of asset reports. Using validated digital verification reports also protects lenders from reps and warrants when used through Fannie Mae’s Desktop Underwriter ®  (DU®) platform. Finicity is also an authorized Freddie Mac asset validation report provider, and Freddie Mac and Finicity are partnering on new methods to validate income from payroll deposit data from bank statements.

What’s Next?

The next steps for Finicity include continuing to broaden the availability of digital verification reports in the mortgage lending ecosystem as well as diversifying its verification solutions. Finicity’s verification of income reports are on their way to pilot for Fannie Mae’s Day 1 Certainty. Finicity and Fannie Mae are also working on a Single Source Validation pilot that will provide asset, income and employment verification through one pull of borrower-permissioned transaction data.

The digital processes being introduced today will continue to be improved and upgraded to offer the cleanest, fastest, most intelligent data possible. Origination time will continue to drop while cost per loan will decline to make a digital mortgage the only option that makes sense for both lenders and consumers.

Fincity looks forward to pushing mortgage lending into the digital age and making it simple for everyone to receive a mortgage that is easier to close, quicker to originate, and cost-effective.  And our recognition from HousingWire demonstrates we’re on the right track.