With efficiency being one of the top guarantees of mortgage lenders across the board, being able to own up to that promise is crucial. A report revealed that third-party data could be a key to bolstering these initiatives by mortgage lenders.
"Success in this new borrower-lender model hinges on the ability of the lender to effectively leverage third-party data that helps provide instant access to borrower information within a secure environment, enabling quicker, often same day, decisions regarding a loan application," according to MortgageOrb.
"This requires information such as pay stubs, lines of investment accounts, bank statements and other details to be verified through third-party integrations and helps to benefit borrowers by significantly reducing the amount of paper documentation required from them."
Third-party data allows mortgage lenders looking to reduce processing costs to free up internal resources and move them towards more complex closings, according to the report. "Having access to the right data can bring a higher degree of certainty to the process and can help yield fewer defaults over time," according to MortgageOrb.
To learn more about how third-party borrower data can be crucial for mortgage lenders, click here.