Revolution Mortgage saves 70% on verifications

Problem

1. Ever-increasing pricing from legacy verification of income and employment (VOIE) and verification of asset (VOA) providers were driving up operational costs and borrowing costs.
2. Loan manufacturing delays were caused by timely review processes with inefficient human intervention and increased borrower friction.
3. The existing mortgage processes weren't built to meet many borrowers' expectations around speed, affordability, and ease.

Truv Solution

Verification of Income & Employment, Verification of Assets, and Integration with Point-of-Sale (POS).

About

Revolution Mortgage has been transforming the mortgage process for borrowers and loan officers since its start in Ohio in 2018. With 200-500 employees covering a national footprint throughout 107 branch locations, the team is all-in on leveraging technology to drive profit, optimize efficiency, and deliver borrowers with an enjoyable track to homeownership.

The Story

Revolution Mortgage was noticing business inefficiencies, common within the mortgage industry, that they chose to view as business opportunities. Ever-increasing costs and outdated data from legacy verification of income and employment (VOIE) and verification of asset (VOA) providers. Loan manufacturing delays that led to timely review processes with inefficient human intervention. A mortgage journey that wasn’t built to meet many borrower’s expectations around speed, affordability, and ease.

Revolution knew it was time to disrupt a regimented way of doing business. What they didn’t know at the start of their relationship with Truv was the domino effect that their shift in mindset and technological tweak would have on the mortgage process for the company overall, and down to their loan officers, the operations teams, and borrowers - from application to underwriting to post-closing.

Revolution has always been technology driven and focused, but that doesn’t mean the decision to disrupt a traditional verification method and vendor came without a grueling vetting process. After hours of conversation on build, implementation, and integration into their existing Point-of-Sale (POS) system, Truv’s Verification of Income and Employment (VOIE) was introduced via a direct integration with their POS, SimpleNexus. Shortly thereafter, Verification of Assets (VOA) was a fast follow.

The implementation of Truv products has proven transformative for the mortgage company, yielding a multitude of benefits. Industry estimates suggest that the cost to originate a mortgage loan can range from a few thousand dollars to over $8,000 per loan, depending on various factors like technology costs, budget expenses, overhead, compliance, third-party services, and more. With Truv’s VOIE, Revolution’s average verification cost per loan sizably reduced from 8 basis points to 3 basis points, translating to hundreds of dollars per loan saved and thousands of dollars per month saved. Introducing a margin-optimizer, like Truv, also results in a faster, lower-expensed mortgage to borrowers, offering a more affordable, more enjoyable path to homeownership.

With Truv’s consumer-permissioned verification products positioned as the initial step for borrowers at the application stage, the company has successfully mitigated fraudulent data by relying on Truv’s ability to pull real time income data directly from the source, bolstering the integrity of their loan portfolio and minimizing risks. They’ve facilitated smarter and easier underwriting decisions, streamlining the process and shaving days off their average time to close – all while ensuring accuracy and compliance. Turn times for processing, underwriting, QA, QC, and closing teams were also reduced through leveraging Truv’s GSE-accepted reports. What’s more is, with GSE-approved data, Revolution realized an organic uptick in representation and warranty relief and experienced a decrease in buyback risks, a win-win for a lender of any size, in any market.

With an all-in approach to Truv, Revolution is poised to reach new heights while revolutionizing mortgage industry standards. The ability to obtain the highly-detailed information on borrowers upfront in the process, directly from the consumer, increases the quality of the loan, with clearer and easier underwriting decisions from day one. By harnessing Truv, they plan to increase the percentage of loans that utilize GSEs for Representation and Warranty relief, aiming for 16-20%. With the right technology stack in tow, Revolution ensures compliance and is solidifying their reputation as a reliable and trustworthy partner in the mortgage landscape.

About Truv

Truv empowers 150+ lenders to instantly verify income, employment, and asset data directly from the source. With best-in-class coverage, configurable workflows, and a focus on consumer-permissioned data, Truv helps financial institutions streamline underwriting while dramatically reducing costs. Truv's full suite of solutions provides GSE-eligible reports for submission to Freddie Mac and Fannie Mae, protecting lenders from buyback risks and delivering market-leading data quality. Learn more at truv.com