Truv Optimizes for Mortgage Lenders
Just when you thought Truv’s leading direct-to-source payroll platform couldn’t widen the gap between the competition any farther, Truv is now the only consumer-permission data platform – in the market – to be approved by both government-sponsored agencies (GSEs) . We are an authorized report supplier for Fannie Mae’s Desktop Underwriter® (DU®) validation service and an approved support provider of Freddie Mac’s Loan Product Advisor®(LPASM) asset and income modeler (AIM). Let’s dive deeper into the benefits of each certification for lenders.
Fannie Mae’s DU Validation Service
Truv is an authorized report supplier for mortgage lenders using Fannie Mae’s Desktop Underwriter® (DU®) validation service. Truv’s consumer-permissioned platform will now be able to obtain and transmit income and employment data through the DU validation service. When income and employment data is validated through the DU validation service using data from Truv, Fannie Mae will provide lenders with Day 1 Certainty® on the validated loan components.
4 Ways Truv and Fannie Mae Support Lenders
As an authorized report supplier for Fannie Mae’s DU validation service, Truv helps lenders:
- Lower Buyback Risks: Lenders can minimize fraud and buyback risks with real-time data sourced directly from a borrower’s employer.
- Reduce Operational Costs: Re-verifying borrower data comes at no additional cost.
- Accelerate Loan Processing: Boost pull-through rates and shorten closing times with less manual interventions.
- Improve Productivity: Streamlined data collection used for underwriting translates to less manual intervention.
Freddie Mac LPA AIM
Verifying a borrower’s income, assets and employment information is a critical part of the loan approval process—but traditionally, it’s also been one of the most challenging steps for lenders – and a point of what can become drawn out friction for borrowers.
By leveraging the support of Truv, a verified third-party service provider, AIM helps to make the mortgage process faster, simpler and more efficient for lenders and borrowers, end-to-end.
3 Ways Truv and Freddie Mac Support Lenders
When choosing a third-party service provider, lenders should do their due diligence to ensure they can leverage the benefits of AIM. Below are benefits lenders can experience using Truv and AIM.
- Verified Data: AIM is a capability within LPA that automates the assessment of borrowers’ assets, income and employment. Using a third-party service provider that is integrated with AIM, AIM provides an assessment using verified asset, income and employment data reducing errors and potentially mitigating risk for the lender.
- Improved Loan Quality: Loans originated using just AIM are two times less likely to produce defects and become delinquent. (Source: Digital Innovation Drives Loan Quality).
- Potentially Faster Turn Times: Truv is integrated with AIM, helping lenders assess capacity faster. This integration enables automated processes to reduce income documentation burden, saving time and money, to potentially improve overall operational efficiency for the lender and loan officer teams.
If you’re ready to see Truv in action or learn about how Truv could work for you, reach out to the team today.
How Lenders Receive Representation and Warranty Relief Using Truv Reports
When a lender uses Truv to order consumer-permissioned income and employment verifications (VOIE), lenders utilize Truv reports with unique Report IDs included. Here’s an overview of the accelerated path to Representation and Warranty relief when you choose Truv:
Step 1: Truv’s Verification of Income and Employment (VOIE) is ordered within Truv Dashboard or directly through an integrated loan originations system (LOS).
Step 2: A Truv order for Verification of Income and Employment is sent to the borrower by text or email in seconds.
Step 3: Borrower logs in to their payroll providers via the Truv Bridge in seconds.
Step 4: A Truv Borrower Report and Report ID number is generated and sent to the loan originator within Truv Dashboard or the integrated LOS.
Step 5: Truv Report is identified in the submission of the loan application to Freddie Mac’s LPA or Fannie Mae’s DU by the loan originator.
Step 6: Receive LPA or DU messaging indicating eligibility for representation and warranty relief following the submission of the loan application.
The Benefit to Borrowers
With consumer-permissioned data, borrowers are in control of their own data. The verification process takes seconds and the transfer of personal information, including income, employment history, and asset details, is safe and secure. On top of that, the mortgage experience from application to closing becomes friction-less for borrowers, requiring less document sourcing, offering faster processing and underwriting approvals, and an accelerated track to closing.
Gain a Competitive Edge with Truv
The bottom line: Truv equips lenders with a differentiating factor. With Truv supporting AIM, and as an authorized report supplier for Fannie Mae’s DU validation service, lenders signal they’re committed to using advanced technology and best practices in income and employment assessment, which may in turn create a better home financing experience for borrowers, leading to more business. A win-win!
