Truework

Transcription:
Transcripts are generated using a combination of speech recognition software and human transcribers, and may contain errors. Please check the corresponding audio for the authoritative record.

Zachary Ennenga (00:08):
Welcome everybody. I'm super excited to kick off this round of demos by introducing Truework's new product: Qualified Income. If you're not familiar with Truework, we're the only income and employment verification platform that can truly verify any income. We have the widest swath of verification technologies and work with our customers to help them build custom waterfalls to meet their needs. Over the last few years, we've all seen the income space become more complex. People are moving between jobs more rapidly and their financial situations are more complex than ever. Everyone has a side hustle these days. At Truework, we've seen the average number of income streams for an application nearly double from about 1.6 to 2.8 or 3 over the last three years. To increase accessibility of home loans, lenders—with encouragement from the GSEs—are seeking to include new types of income and a wider variety of methods to support them.

(01:00):
What that all means for you is that getting clean, usable, and verified income is getting exponentially more complex and more expensive. Truework's Qualified Income product is aimed at solving all these problems by combining dynamic per-income-type waterfalls alongside advanced screening of income data points. We can give you confidence, even at a pre-approval stage, of how much income a borrower has as simply as just clicking a single button. So with that, let me get started. Starting off right here, we have our consent screen for compliance. Moving forward—there we go. We have our task screen here. As I alluded to earlier, we realized a single waterfall is not enough these days to meet the needs of the modern borrower. You need to have a whole fleet of waterfalls based on the needs of the income type, the loan product you're servicing, the borrower, and so on.

(01:57):
The way that Truework's Qualified Income product works is every single income type has its own little waterfall with a set of methods to find the optimal path to verify that income. We're constantly updating these as per GSE guidelines as well as customer needs to make sure that you're always on the cutting edge. Clicking into our first one, we have a salaried income right here; pretty simple. We're going to use a bank data connection for all bank data these days. I'm going to click through fairly quickly—this is the less exciting part of our demo. We're using Finicity; shout out to Finicity, we love them over there. Click and click, both accounts saved. Okay, there we go. Beautiful. Hopefully this goes fast for a live demo and we're good. Alright, beautiful. Love it. My favorite part about doing live demos for our product is all the exciting stuff that I want to show you is happening in the background.

(02:49):
Let me paint you a picture here of what the screen means and what this is doing in the background. We talked about this coming out of a login to a bank account, and we know asset-derived income (or ASV) is a super exciting thing in this space right now. It really promises to be a silver bullet. However, I think we also have seen—and we've seen this a lot with our customers—that it's not always usable. We are hearing about 12% to 14% usability of these income streams from our customers, and we know that's simply not enough to actually be something you can rely on. The borrower experience when this happens is really terrible; you log in, you get told you're good to go, and then you have to be pulled back again, and maybe again, for more documentation. Particularly at an early stage in the application process, every time the borrower has that friction or a bump in the road, that's one more chance for them to bounce and go talk to somebody else. Our goal is to let you know, live within the waterfall, the usability of these income streams.

(03:49):
The way that this works is we're using a collection of validation APIs from Freddie Mac's AIM Check APIs—shout out to Freddie, we love you guys—as well as a bunch of other income calculators and validation APIs to validate within the flow if we think the income is actually usable. This is very early; this is a very new product for us, so please forgive the small sample size. We are seeing that you are 33% less likely to need to go and get further documentation for an income stream validated by this suite of APIs we use for Qualified Income. That means 33% less time that you have to go back to your borrower and say, "Please give me some more documentation," and 33% more of the time where you can click one button and be one-and-done with income.

(04:37):
This means you complete loans faster, you make them cheaper, and there's less work for you all so you can focus on things that matter to you. The next thing that happens here is, in this case, two income streams are good to go—thumbs up, great. One did not have enough information, so we'll move forward to our next step, which is our credential login solution. Clicking through here, connecting... and hopefully not 30 seconds... good. Okay. With this, we have three income streams already verified with two methods: two with asset data via Qualified Income, and one with payroll data. Finally, we have self-employment here. We use tax transcripts with a tax transcript product, and that one's pretty simple—it's the IRS process. Finally, let's say the borrower remembered their loan officer's request, "Oh, hey, actually if you have any more income, please add it."

(05:29):
So they'll add another income. We're going to add something kind of exotic here: we'll add child support, and we'll find that in the asset income stream. Again, it's validated by Qualified Income and you're good to go. Ultimately, we believe Qualified Income will allow you to complete loans faster with greater confidence and with less friction for your borrowers. We're currently piloting Qualified Income with a select set of customers, aiming for GA in Q1. We're really excited for that. Ultimately, Truework is the only platform that can truly verify any income, and we're so excited to uplevel the income verification experience for you all. That's it. Thank you.