How Truework provides efficiency and security for lenders and borrowers

SAN FRANCISCO, Calif./ACCESSWIRE/September 9, 2022 / Real estate is booming across the country. Unsurprisingly, so is the loan market.

According National Mortgage Advisordigital lending alone is expected to top $20 billion by 2027. However, the lending process can be difficult for both sides of the coin to manage.

What makes it so complicated? Lenders must be able to assess a potential borrower’s ability to repay a loan. There are many ways to determine if a potential borrower represents an acceptable risk. One of the most common methods is to verify the applicant’s income and employment.

Traditionally, this process requires the lender to do most of the legwork to corroborate the applicant’s income and employment information. But it’s a process that’s often fraught with pitfalls, as getting income and employment information from employers to lenders has always been difficult, expensive and time-consuming.

What kinds of issues hinder seamless transfer of information? For one thing, many employers aren’t set up to quickly and accurately verify worker data. They may not even know what data they must or can legally disclose to a lender. This can cause hiccups at best. At worst, sharing too much could cause the employer to break regulations and laws.

Another common hurdle in the income and employment verification exchange process involves a long-term commitment. Specifically, lender team members may not have the time or bandwidth to search for verifications. The longer it takes to verify someone’s income and work history, the more likely the applicant will seek a loan elsewhere.

Despite these issues, many lenders still want to base their approval decisions on applicants’ income and employment data. They just need a better way. To help them speed up the experience and win more customers, many partner with revenue verification services like truework.

The Truework method for exchanging sensitive information

What makes the Truework workflow unique? First, the borrower submits a loan application to the lender. The lender then begins an application with Truework to confirm the borrowers’ income and employment, a process that is necessary to mortgageand is becoming increasingly common in auto and consumer loans.

At this point, Truework’s waterfall verification approach kicks in. If the borrower is already one of the millions of employees instantly verifiable through Truework’s pipeline or through their partners’ payroll systems, Truework sends an e -email to the borrower. The email asks if it is okay to release the consumer’s financial information to the lender. A “yes” answer allows the lender to get the verified income data and approve the loan in minutes.

What if a borrower’s employer or payroll system is not with Truework? The borrower has the ability to connect to their payroll provider and share income and employment data directly from the source. If none of these methods provided verification data, Truework can switch to manually collecting income and employment verification through a call center-based service called Smart Outreach. Whatever process works best for each borrower, the goal is to make the experience as easy and quick as possible.

Stay loyal to borrowers and lenders

As a verifier, Truework may appear to be primarily a vehicle for serving lenders. But on closer inspection, it’s just as valuable to borrowers. Below are some of the differentiators that benefit parties typically involved in income and employment verification.

1. Only “need to know” information is exchanged.

As noted above, many employers put their reputations at risk by giving too much information about employees to lenders. Additionally, they may be tempted to transport the information through insecure portals such as unencrypted emails or text messages.

Truework stays on top of details such as what should be in proof of employment letters. Company may create and distribute these types of materials subject to local, state, and federal rules.

2. The approval process is strengthened.

Borrowers cannot wait forever for a lender to make their approval or denial decisions. Consider the mortgage application process. Many borrowers go to more than one lender to compare rates. If they find a house and want to make an offer immediately, they can accept the first “yes” they receive.

Truework shortens the time lenders need to perform due diligence. By removing this sticking point, lenders have a better chance of converting applicants. At the same time, candidates with attractive credentials can be offered equally attractive rates.

3. Verification responsibilities rest with one party.

Lenders are strapped for manpower, as are organizations in so many other industries. It can be difficult to keep up with verifications, even with the help of software. Truework takes care of all verification tasks and removes that chore from lender plates.

Although borrowers do not always participate in verification, they may feel the need to call previous employers if the process is not quick. Again, Truework’s ability to take care of everything saves them from having to endure extra legwork.

4. Truework is experiencing an impressive growth pattern.

It’s always a good sign to see companies embracing continuous change. Although Truework has carved out a strong niche in its market, it has never stopped innovating. This is one of the reasons why the company was recently able to raise an additional sum $50 million in Series C funding.

Borrowers and lenders can feel secure knowing that Truework is on a path of constant improvement. They can also expect to see Truework’s proprietary systems and solutions used for other use cases.

Lenders will always want to ensure that the applications they receive are accurate. Truework makes it much easier to confirm employment and salary details without slowing down the loan process.

About: Truework is revamping the credit system with consumers in mind. Giving individuals control over their own personal data, Truework provides an API-enabled platform for income and employment verification that is secure, efficient and accurate. By using Truework as a consumer reporting agency operating under the FCRA, banks, lenders and background check providers can verify any US employee. Through partnerships with payroll providers such as Gusto, Zenefits and BambooHR, Truework has the second largest instant verification network with over 35 million employees. To learn more, visit www.truework.com.

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