Why Completion Rate Matters More Than Coverage for Income and Employment Verification
Mortgage lenders constantly seek efficient and reliable methods to verify borrowers' income and employment. While coverage plays a crucial role in ensuring access to a wide range of data sources, it often overshadows the metric that actually determines cost efficiency and report quality: completion rate.
What is income completion rate and how is it different from coverage?
Coverage refers to the breadth of an income verification platform's reach, often expressed as the percentage of the U.S. population for which it can provide an income verification report or as an absolute number of employee records
However, a high coverage number alone does not guarantee the quality or accuracy of the income verification process.
Completion rate measures the effectiveness of an income verification platform in generating complete and usable income verification reports. It represents an average percentage of income verification requests that result in a full report for a given mortgage lender's loans.
A high completion rate signifies that the platform is successful in obtaining the necessary information and generating reports efficiently.
When evaluating an income and employment verification platform, it is crucial to prioritize completion rate over coverage. A high completion rate ensures the most accurate and reliable income information while minimizing the total cost of verification.
The cost of low income verification completion rates for mortgage lenders
Using an income verification solution with a low completion rate necessitates lenders using multiple providers and internal processes, which increases the overall cost of their verification strategy and causes a fragmented experience for loan teams.
Lenders must stay current with new technologies and data sources to cover their applicant pool, and they have to learn, implement, and manage orchestration across multiple vendors, adding cost and complexity at every turn.
Truework Income completes on average 75% of verifications
Truework Income is the only all-in-one automated VOIE platform that reduces disruptions by connecting all major verification methods into a single, easy-to-use solution. The result is an average completion rate of 75% of verifications across our mortgage lending clients.
Lenders have less to manage, and loan teams have one process to follow. By getting more completions through Truework, lenders can recapture the valuable time their teams spend on the verification process.
Truework is continuously improving its completion rate
At Truework, we are always adding new verification methods and data sources to our platform to help lenders automate as many verifications as possible. Soon, we’ll be adding a tax solution to enable lenders to verify self-employed borrowers more efficiently.
