Mortgage tech firms FormFree and Docutech are teaming up to make verification of assets (VOA) and verification of income and employment (VOI/E) available in the initial disclosure phase of the mortgage process.
FormFree’s AccountChek, a service that allows lenders to verify borrower’s assets, income, employment and rent payment history, is used by retail, wholesale and correspondent originators. It will now be integrated with Docutech’s Solex, an end-to-end eClose solution that allows lenders to work with only one vendor for closng.
The integration will greatly benefit wholesale lenders by extending electronic verification to broker networks, the firms said, speeding up the the turnaround time for getting loan documents processed by brokers.
The integration places “verification of a borrower’s ability to pay at the earliest engagement point in the mortgage process,” said Brent Chandler, CEO of FormFree.
“Rolling a VOA/IE option into the electronic signing experience within Solex provides our clients with a valuable opportunity to compress loan cycle times at a critical milestone in the lending process,” Emily Shapiro, president of Docutech, said in a prepared statement.
The integration comes amid a mortgage downmarket where origination activity is forecast to drop by 45% to $2.47 trillion in 2022 from the previous year, according to Fannie Mae.
One of the strategies to navigate the downmarket is to streamline the mortgage process, according to the agency’s mortgage lender sentiment survey. About 42% of mortgage executives representing 189 lending institutions said they are improving the mortgage origination process and customer experience.
Docutech, founded in 1991 by Ty Jenkins and acquired by First American in 2000, completed more than 700,000 eClose, hybrid eClose and remote online notarization (RON) for mortgage lenders, the firm said.
FormFree, established in 2008 by Brent Chandler, says it has completed over $3 trillion in loan verifications. Its AccountCheck covers 85% of working Americans representing more than 100 million wage earners, according to the firm’s website.