Credit bureau, fintech firm partner on data-aggregation product for mortgages

Experian has introduced software to speed up the processing and approval of consumer mortgage applications.

Experian and a partner, Finicity in Salt Lake City, launched Digital Verification Solutions on Monday. The software verifies a loan applicant’s income and assets, using real-time financial-data aggregation.

The product allows for real-time verification of income and assets for about 80% of all U.S. financial accounts, said Alex Lintner, president of consumer information services at Experian. It will also help reduce some paperwork, which should lead to cost savings for lenders, he said.

In addition, the product creates a date stamp, called a financial transaction identification number, during the verification process. The date stamp allows lenders to audit the approval process after the fact and is meant to aid consumers who file disputes.

Experian and Finicity’s product is part of a Fannie Mae pilot program, called Day 1 Certainty, that is attempting to provide automated loan validation technology to mortgage lenders.

The use of financial-data aggregation has become an active area for fintech companies in the quest to speed up decision times. Plaid, a San Francisco startup, earlier this month partnered with the mortgage-software provider Ellie Mae to introduce a lending platform that offers “near-instant asset verification capabilities.”