Electronic Asset Verification for Mortgages

The process of applying for a mortgage and buying a home can be time-consuming and frustrating for both borrowers and mortgage lenders. Many of the underwriting processes currently in place rely on paper-based requirements – such as borrower bank statements, retirement account balances, credit card statements, saving accounts statements, asset statements such as real estate statements, tax returns, pay stubs, and more, which are all gathered up in a process that’s tedious and slow to estimate the borrowers net worth. However, with electronic asset verification for mortgages, the application process is reduced as borrowers no longer need to supply piles of paper-based statements. This also helps lenders identify red flags sooner and, therefore, leads to a more seamless process for lenders and buyers.

From Hefty Paper-based Files to Seamless Electronic Asset Verification

The typical mortgage loan application file has grown to 500 pages or more. These hefty files are the result of increased regulatory oversight and stricter compliance standards put into place after the housing meltdown in 2008. With more lender and investor scrutiny and increased penalties and buy-back liabilities, mortgage industry professionals are under immense pressure to accurately document and verify borrowers’ income and assets to further reduce risk and fraud in the process. Meanwhile, consumers themselves are expecting faster and easier mortgage processes. Many are looking for digital mortgage services that are in line with the faster and more seamless processes they enjoy from Amazon, Apple, and other tech-savvy service providers. How can mortgage industry professionals and lenders satisfy borrower expectations and enable the digital mortgage – yet still acquire the information needed to comply with legal requirements? And how can the time and expense required to process loans be reduced? Simple. It starts with electronic asset verification.

Electronic Asset Verification for Mortgage Loan Applications

By gathering borrower fixed and liquid assets through an electronic asset verification process and compiling them into a comprehensive report, borrowers no longer need to supply piles of account statements. And processing time for lender requests is reduced. The leading aggregation and analytics provider, Envestnet | Yodlee, has introduced an electronic asset verification for mortgages report that obtains real-time account and transaction data directly from financial institutions. The information is combined with data analytics and summary calculations to provide a comprehensive view of borrowers’ cash deposits and investment assets.

The report protects consumers and lenders by implementing a complete Fair Credit Reporting Act (FCRA) framework around the use of consumer reports and rights to disclosure and dispute. By simplifying the process of gathering account data, consumers get the streamlined digital mortgage application experience they desire. This eliminates the need to round up all and transmit all of their paper statements – one of the most painful parts of the mortgage process. The time to ease the mortgage application process, reduce the paper, and cut the number of manual hours required to close home loans is now. Mortgage asset verification reports are key to enabling digital mortgage and revolutionizing the mortgage experience for borrowers and lenders alike.