How Truework Uses Predictive Modeling to Bring Transparency to Income Verification

Why is income and employment verification so complicated?

Verifying a potential borrower’s income and employment requires multiple data sources, documents, outreach, and validation. To solve for that, mortgage providers build complex in-house waterfalls to look for income and employment data or hire people whose sole responsibilities entail collecting and validating that data.

Simply put, income and employment verifications can be complicated. You want to make dreams come true and move people into homes, but you’re spending valuable time and money orchestrating this complex process and keeping it up to date. Despite these costs, having this process in-house has its advantages:

• You know exactly how your process works
• You have established means of communication between personnel such as loan officers, underwriters, and specialists working on this process
• You can “poke” the system, understand where a potential borrower is in the process, and take action to ensure that process completes

Moving your verifications from such a process to Truework can feel daunting. You are uprooting a process of which you have understanding, control, and visibility and replacing it with a process that may seem like a black box to you.

What happens when income verification goes wrong?

When the black box works, perfect! Understanding how it works doesn’t matter when all is fine and dandy. But what happens when verifications go wrong?

What about when employers don’t respond or information is malformed? All of a sudden, we need to explain why we’re not able to put this person into a home, and a true black box would not provide a satisfactory explanation.

Fortunately, Truework isn’t just a black box. Transparency and visibility are cornerstones of Truework’s automated income and employment verification platform. It’s part of how we deliver complete reports and it applies to our orchestration engine as well.

The Status Page as a window into the orchestration engine

You can get detailed status updates on your income verification by using the Status Page. Every time an action is taken to complete a request, Truework shares a detailed status update with our users.

These updates are organized based on the Truework verification method currently used to complete the verification. 

Truework provides step-by-step visibility into verification status, from request review through credential processing and final report completion.

Here you can also see if there are additional actions you can take to maximize the chances we provide you a complete report.

This provides clarity into how our process works, what has happened and should happen.

Taking it one step further with predictions

Whether we’re waiting on a pizza or a parcel, we often want to know when we can expect something to be delivered, so that we can plan around it. Income verifications for mortgage lenders are no different.

Through years of experience, we’ve developed a deep understanding of how verifications behave. With this domain knowledge and a vast dataset of hundreds of thousands of verifications like yours, we can compare your verification to those like it from the past. We can model the remaining steps to completion, how long they will take, and the likelihood they will result in a successful completion.

Internally, we use these verification models to optimize our verification engine, ensuring we maintain our industry-leading 75% completion rate as quickly and efficiently as possible. Beyond this, it allows us to bring you Estimated Turnaround Times and other improvements to status updates!

Truework’s API can help teams anticipate verification timing and completion likelihood before a report is finalized.

How does Truework's predictive modeling work?

As our income verifications progress, we log the success and failure of important stages of the process and their turnaround times. We model verifications using a wide range of inputs, including:

• Target Employer
• Time and Day of Submission
• Verifier Configuration
• Interactions from verifiers, the Truework team, and the potential borrower
• And many other attributes that describe a verification in our orchestration engine

From these representations of verifications, our models can then learn expected turnaround times and expected probabilities of success.

The Value of Transparency

By providing a clear window into the income verification process, Truework allows mortgage lenders to understand exactly where each verification stands, see what actions are needed, and facilitate completion just like an in-house process, but without the overhead.

This level of transparency builds trust between you and your automated VOIE platform, leaving you to focus on everything else you need to evaluate potential borrowers and help people find their next home.