Finovate Blog

Real-time financial data access and insights company Finicity has unveiled its latest solution to accelerate the lending process and further the trend toward digitization in the mortgage industry. This week, the company launched its Verification of Income and Employment (VOIE) solution, which leverages bank data and a scan, photo, or PDF of the borrower’s pay statement to make borrower verifications both faster and more accurate. In its statement Finicity noted that VOIE is expected to successfully provide coverage of more than 70%. This compares favorably to the accuracy rates of existing automated solutions, which top out near 25%.

Calling Finicity’s VOIE “the new gold standard of income and employment verification,” company CEO Steve Smith suggested the technology would be a significant new resource for lenders. “We know it will be met with fast adoption by key industry players who aim to be on the cutting edge of lending technology,” he said, adding “(with) VOIE building upon our current Verification of Assets solution, lenders will now be able to use Finicity as a one-stop-shop for digital verification.”

Appreciation for Finicity’s VOIE solution has already been heard from the likes of major mortgage industry players such as Freddie Mac, Quicken Loans, and Experian – all of which have leveraged Finicity’s technology to automate the manual processes that have historically made the loan origination experience cumbersome for all parties involved.

Freddie Mac, for example, highlighted the contribution Finicity’s VOIE would bring to its own asset and income modeler (AIM). “(Our) partnership with Finicity has helped to create a waterfall-like approach by adding paystub data to our AIM capability using accurate and verifiable data that meet our underwriting standards,” Senior Director of Technology Integration at Freddie Mac Kevin Kaufman said. “This means more opportunities for representation and warranty relief and greater costs savings for lenders all while delivering a better lending experience to borrowers.”

Quicken Loans EVP of Client Experience Heather Lovier echoed Kaufman’s praise for the technology, referring to VOIE as “a critical next step in the evolution of the mortgage process.”

The news of Finicity’s Verification of Income and Employment solution comes one month after the company introduced its Student Loan Account Verification solution. This technology enables employer repayment programs to access Finicity’s ACH endpoint to confirm the accuracy of accounts and routing numbers when making loan payments on behalf of their employees. Fellow Finovate alum Vault is among the companies to have partnered with Finicity in order to put the technology to work on behalf of employer-based student loan contribution programs.

Founded in 1999 and headquartered in Salt Lake City, Utah, Finicity demonstrated its credit decisioning solutions – including its Verification of Income (VoI) and Verification of Assets (VoA) technology – at FinovateFall 2017. The company has raised nearly $80 million in funding, and includes Experian Ventures and Bridge Bank among its investors.

Earlier this year, Finicity inked a major partnership with Ellie Mae, integrating its Verification of Assets solution into Ellie Mae’s Encompass Digital Lending Platform. This makes Finicity’s technology available to the more than 230,000 users and thousands of providers who, as part of Ellie Mae’s partner network, process “approximately one-third” of all the residential loans originated in the U.S.