Until recently, income verification was a costly process, especially when paired with employment or asset verifications from multiple verification providers or vendors. However, businesses in the financial sector always look for ways to slash expenses and maximize profit margins. Truv offers a significant reduction in verification costs, making it a game-changer for businesses.
How Truv Helps Reduce Verification Costs
Income and employment verification is extremely common in the financial industry. Also known as verification of income and employment (VOIE), this process helps lenders determine whether an applicant has the financial resources to repay a loan. Although VOIE is important, it can be expensive, especially if you rely on time-consuming manual processes that impact operational overhead.
In addition, to expedite the VOIE process, lenders often use instant databases. This costs up to $123 per borrower, which means verifying two co-borrowers may cost as much as $246. About 10 days before closing, the lender has to go through the verification process again to make sure nothing has changed, also known as a 10-day pre-closing verification, adding up to $123 per borrower. As a result, instant database verifications often cost lenders nearly $500 per loan file.
You also have to consider the indirect costs of the employment verification process. If your lending team has to request verification twice for every borrower, they have less time to spend on keeping other loan files on the fast track to closing.
The Truv Difference
As a consumer-permissioned verification solution, Truv allows applicants to connect directly to payroll providers, eliminating the need for verbal or written income and employment verifications. This is just one example of how consumer-permissioned data helps reduce processing time and minimize verification costs.
Truv’s consumer-permissioned VOIE is up to 80% less expensive than the traditional database method and is proven to save up to $350 per loan file.
Whether you need income verification or Truv employment verification, Truv also offers free reverifications for up to 90 days, keeping your costs as low as possible. Our easy, free, pre-close verification helps you manage risk effectively without increasing your verification costs, making it a critical tool for your company’s success.
Compass Mortgage is one of several companies that have used Truv to reduce its verification costs. During the initial testing period, Compass saved 60-80% compared to its original provider. Lenders also had more confidence in their decisions due to the availability of real-time verification data.
Key Features of Truv
Truv offers the perfect blend of accuracy, speed and automation, all of which maximize your savings. With direct-to-source data, it’s possible to eliminate the back and forth associated with traditional verification methods. Truv also takes a comprehensive approach to defining conversions.
Some vendors charge for every account with a successful connection. Although connections are a critical step in evaluating conversions, they don’t provide a complete end-to-end measurement. In some cases, an account connection is successful, though some scenarios may occur:
- The data may or may not be retrieved.
- The retrieved data doesn’t have all the fields needed to call it a successful verification.
- Derived fields aren’t accepted by GSEs.
Truv goes a step further, defining a conversion as a transaction that returns usable data, JSON, Truv-generated report and original source documents like paystubes and W2s, ensuring you receive complete and accurate information to make informed decisions.
The Efficiency of Truv’s Verification Process
Because Truv relies on consumer-permissioned data for several income verification examples, borrowers typically complete their steps in the Truv Bridge in under 1 minute. Additionally, when Truv is embedded into a point-of-sale (POS) system as part of a loan application, conversion and pull-through are significantly higher.
If Truv isn’t embedded into your POS to be completed during the loan application, you can still use a Loan Origination System (LOS) integration to present Truv to borrowers via links sent in SMS or email notifications, branded for the lender. Additionally, with an easy configuration, orders can be automated from the LOS based on certain criteria, including loan milestones, credit scores, and more.
Ease of integration, combined with consumer-permissioned data, streamlines your verification workflows, saving time and critical resources.
Why Cost Reduction Is Crucial for Financial Institutions
Financial institutions face increasing pressure to reduce costs without sacrificing accuracy. Truv verifications cost less than standard ones and take less time to complete. Once you implement Truv, you can use the time savings to launch new programs or provide better service, making your company more successful overall.
The Long-Term Benefits of Using Truv for Verification
Over time, using Truv can save your company a significant amount of money. You can reinvest the savings into other areas of the business to maximize growth and improve profitability across the board.
Revolution Mortgage partnered with Truv in an attempt to combat rising verification costs and loan origination delays. The technology-driven company used Truv’s direct-to-source data to drive loan volume and reduce its verification costs by 70%. Revolution also reports increased loan quality due to its partnership with Truv.
How to Get Started With Truv
To get started, request a demo of Truv’s verification services. We have a simple onboarding process and plenty of resources available to shorten your team’s learning curve.
FAQs
How does Truv reduce verification costs?
Truv reduces verification costs by using consumer-permissioned data instead of traditional databases. This reduces the time it takes to complete each verification.
What are the benefits of using Truv for income verification?
Truv offers several benefits for financial institutions, including increased accuracy, improved efficiency and higher profit margins.
Is Truv secure?
Truv is extremely secure, as it uses industry-leading encryption tools to prevent unauthorized access to confidential data.
How can Truv be integrated with existing systems?
Truv offers out-of-the-box integration with multiple loan origination systems, including Encompass, Empower, and Byte, and POS platforms, including nCino, BeSmartee, LenderLogix, Floify, and Lodasoft, making it easy to take advantage of its benefits.
