When it comes to life's major financial milestones, consumers expect a process that is both efficient and straightforward. According to Freddie Mac, the average borrower applies to more than 5 different lenders before making their decision. Businesses are shifting to win these consumers while balancing lowering costs and increasing automation in a high-rate environment. Ensuring timely verifications during the decisioning process is a good first step. However, relying on multiple third-party partners for each of your verification needs can lead to complexity, confusion and higher total cost of ownership. Here's why lenders and other verifiers are simplifying the decision-making process by choosing one solution to take care of all their income verification needs.
Using one VOI/E verification solution increases efficiency by automating the process of verifying a borrower’s income and employment. This not only saves time, but also reduces human errors. For example, an income verification solution may use various points of data to help you reach a lending decision. For some borrowers, that verification can be done instantly through data source partners or their own payroll network. For others, you may end up needing to look elsewhere to be able to complete the verification. This slows down the process for your customers and introduces the possibility of inaccuracies when parsing through multiple sources of truth. By eliminating the time spent searching between providers during every loan, you’re able to increase efficiency and decision accuracy.
Reducing time spent reconciling invoices also helps increase overall operational productivity. One lender found that they were able to increase capacity by 5-10%, accelerating revenue growth even in a down market. Operational overhead is also reduced when you don’t have to build a verification waterfall by piecing together several VOIE providers. Reconciling multiple invoices with multiple ways of verifying the exact same thing can be incredibly difficult to follow, so we've put together a comprehensive guide to understanding income and employment verification pricing.
As more tasks become automated there is greater potential for efficiencies and cost savings. National Mortgage News observed that 60% of companies across the board plan to put additional spending towards automation technology in the upcoming years. In mortgage and consumer lending this means that verification platforms offering a one-stop solution can be more cost effective in both the short and long term. Scaling with one provider for all of your income and employment verification needs can be more cost effective than consolidating multiple sources for verification and generally leads to better unit economics than an array. Lending decisions can be made faster, and consumers will have a better experience overall.
Using one vendor simplifies the process and enhances visibility for your business. Managing, negotiating and connecting multiple verification solutions wastes time and internal technical resources. That’s before you consider the learning curve for each individual vendor. With disconnected solutions, your team wastes time going back and forth between different providers. On the other hand, creating a streamlined workflow between verification vendors takes time and resources away from your team, especially if the workflow breaks.
By working with a single solution, your team can access a complete set of tools and capabilities through a simplified and consistent process. This helps streamline decision-making by ensuring data is consistently formatted, reducing the need for back-and-forth communication between team members and increasing the accuracy of your data. Your underwriting team will be able to make faster decisions and focus less on filling in any information gaps across multiple vendors.
Choosing one income and employment verification solution helps lenders and other verifiers simplify the decision-making process and comes with a number of advantages. From increased accuracy and streamlined workflows to cost savings through automation with consistency and standardization. Using different vendors for each verification process wastes time, resources and creates a bad experience for your borrowers. With one partner committed to your success, lenders can leverage a verification solution that enables faster and more accurate decisioning.
20 out of the top 25 lenders in the US rely on Truework as their preferred solution for income and employment verifications. Maximizing coverage through multiple methods of income verification, we help lenders like you gain access to up-to-date borrower information instantly. When information is not instantly available, or available through consumer-permissioning by connecting the user’s payroll network, Truework’s automated research verifications (Smart Outreach) complements our VOI/E service to keep the process moving forward. This allows lenders to access millions of employees to obtain the verification information they need in an automated workflow.
Our technology and automation enables Truework customers to benefit from superior service and quick turnaround times. Additionally, VOI/E offering is committed to providing results: if we are unable to complete verification, you don’t pay for it. By working with one solution for all your verification needs lenders can save time, simplify the decisioning process, and create faster time-to-decision. This benefits lenders, verifiers and the customers you serve.
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