Income and employment verification is one of the most important processes in the financial sector, as it assesses a consumer’s ability to repay a loan. However, banks, credit unions and independent mortgage banks face various challenges during the income and employment verification process. For example, traditional verification processes are prone to delays.
Manual verification is also subject to human error, so a financial institution may approve a borrower who doesn’t have the means to repay a mortgage, auto loan or personal loan. As a result, traditional verification methods introduce additional risk to the lending process.
Truv uses consumer-permissioned data instead of traditional databases, eliminating these concerns. The platform is so effective that Truv now serves five of the top 20 banks and credit unions in the United States, along with more than 120 mortgage lenders.
Truv’s Innovative Solution to Income and Employment Verification
The meaning of employee verification hasn’t changed, but the verification process has. Financial institutions are no longer content waiting days or even weeks to complete each verification step.
Truv leverages technology to streamline the income verification process, reducing the need for manual intervention. Truv employment verification takes less time than ever before, helping financial institutions save time and reduce operational expenses.
Truv vs. Traditional Verification
In its early days, income and employment verification required consumers to produce hard copies of their tax returns, bank statements and other important documents. It took days or weeks for borrowers to gather and submit the information for lender review. Lenders had to keep track of these documents, introducing additional complexity into their workflows.
Instant database verification services come with significant costs, often reaching up to $123 per borrower or as much as $500 per loan file for co-borrowers. These rising expenses strain financial institutions, making it harder to maintain profitability while keeping the process efficient. Consumer-permissioned verification, like Truv’s solution, eliminates these high costs by providing accurate, real-time data directly from payroll providers, streamlining the process without breaking the budget.
During the digital age, lenders gained access to technology designed to speed up the verification process. However, income verification was still prone to errors and fraud. That all changed when verification platforms started using consumer-permissioned data.
Introducing Truv
Using the Truv Bridge, consumers can complete their verification steps in as little as one minute. Lenders also gain real-time access to data, helpful automations and the ability to complete secure verifications.
Truv also offers a robust range of integrations, including point-of-sale (POS) and loan origination systems (LOS), enabling lenders to automate verification steps as part of the loan application process. This makes it possible to collect key borrower details as early as the loan application with Truv embedded within the POS, eliminating frustrating delays. Faster verification helps expedite loan approvals while reducing costs.
Current POS and LOS integrations include:
- Floify
- BeSmartee
- nCino
- Lodasoft
- LenderLogix
- Encompass® by ICE Mortgage Technology
- Empower by Dark Matter
- Byte
- And more to come
When you’re ready to complete income and employment verifications with Truv, our implementation process allows for easy configuration, customization and automated orders. The Truv platform is designed to enhance workflows for lenders, resulting in increased efficiency.
Customer Success Stories: Real Impact on Financial Institutions
Truv serves some of the country’s top banks, credit unions and independent mortgage lenders, many of whom have shared outstanding results since switching to the Truv platform. Here are some case studies to illustrate the benefits of integrating Truv into your verification process.
NFTYDoor
NFTYDoor gives consumers access to their home equity, making income verification an essential component of its lending process. Initially, NFTYDoor sought out Truv due to our ability to streamline insurance verifications. After increasing conversions on homeowners insurance to 70%, NFTYDoor achieved a 45% conversion on its verification of income and employment activities.
Compass Mortgage
Compass Mortgage was struggling with extremely high costs, prompting key decision-makers to seek an alternative. After partnering with Truv, Compass reduced its verification costs by 70%.
Mortgage Investors Group (MIG)
Like Compass Mortgage, MIG needed a way to reduce costs without giving up access to accurate data. Partnering with Truv helped MIG double its conversion rate and save up to $150 on several transactions.
Revolution Mortgage
Revolution Mortgage had been using a legacy verification service for years, but costs kept rising without any corresponding increase in conversions. Switching to Truv helped Revolution reduce its verification costs by 70%.
America First Credit Union
America First Credit Union worked with Truv to complete income and employment verification for home loans. After just a short time, AFCU reported a 60%+ conversion and 80% cost savings.
Future-Proofing Your Income Verification Process
In the coming years, you can expect additional automation options for your verification processes. Recognizing the need for increased accuracy, improved data privacy and faster verification, lenders will likely turn to consumer-permissioned verification instead of using outdated legacy systems.
Truv plans to adapt to changing market conditions by updating its platform and enhancing its capabilities, ensuring financial institutions remain competitive and compliant in a rapidly evolving business landscape. Request a demo today.
FAQs
How does Truv improve income verification for banks and credit unions?
Truv improves income verification for banks and credit units by increasing accuracy, maximizing efficiency and reducing verification costs. Multiple companies have used Truv to enhance their profitability.
What are the cost savings of automating income verification with Truv?
With traditional methods, it may cost nearly $500 to complete verification for two co-borrowers.
How does Truv help financial institutions reduce risk in loan approval processes?
Truv helps financial institutions reduce risk by using consumer-permissioned data, an approach that allows consumers to connect directly to their payroll portals. These direct connections eliminate the need for verbal income and employment verification, giving your team more confidence in its underwriting decisions.
Can Truv’s solution integrate with existing systems in my institution?
Absolutely, Truv integrates with several point-of-sale solutions and loan origination systems for your convenience.
What are the benefits of real-time income verification for financial institutions?
Real-time verification eliminates delays that could cause your company to lose valuable customers. It also increases efficiency, enabling financial institutions to streamline their workflows.
