Mortgage lenders rallying around directly sourced data as a time saver

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Accessing a mortgage applicants' data from a direct source goes a long ways toward shortening the origination process, according to 96% of mortgage underwriters responding to a recent CoreLogic survey.

The survey of 275 mortgage professionals also found that 66% of underwriters still find they need to request documents two or three times before borrowers submit them, and 56% still need more than 30 days to close a single-family home loan.

More than half of respondents to the August survey also find the mortgage underwriting process as a whole is becoming more difficult rather than easier.

Documentation was identified as the biggest pain point among 20% of the underwriters who responded to the CoreLogic survey. Other key areas of concern identified by respondents included processes that involve income (9%), verification (9%), loan files (7%) and communication (5%).

CoreLogic conducted the survey in conjunction with automation it released at the at the 2018 Digital Mortgage Conference.

The technology, which is called AutomatIQ Borrower, aims to standardize income analysis by giving lenders access to consumer data and verification services. It also is the first in a series of digital mortgage technologies the company plans to release through its AutomatIQ product line.

The largest secondary market buyer in the mortgage market, Fannie Mae, is encouraging lenders it purchases loans from to use direct-source data verification by offering representation and warranty relief for its use.

Fannie also has conducted a related pilot project in which bank information is used to consolidate the verification of loan applicants' data.

Fannie's competitor, Freddie Mac, has similar initiatives.

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Digital mortgages Underwriting Data and information management GSEs CoreLogic