Survival and success as a lender in a purchase market is shaped by the efficiency and accuracy of the origination workflow. In a heavily regulated industry that balances the complications of consumer finance with the art of customer service, lenders are facing an uphill battle when it comes to customer experience, turn times and long-term risk mitigation.
According to Fannie Mae’s August National Housing Survey, consumers identified the gathering of financial information as the “most difficult” part of the mortgage process. The back-and-forth of obtaining correct and complete information from the borrower leads to a document collection process that can take as long as 10 days and is susceptible to fraud.
Further slowing the process is the component of tax transcript validation, which can take longer than five business days and can lead to serious delays given the high rates of rejection from the IRS.
When they started PointServ in 2009, the founders set out to create a seamless and efficient consumer experience by reducing the typical eight- to 10-day document collection process to just five to 10 minutes. The Digital Sourced Document Solution (DSD) eliminates a great deal of lender risk by pulling income, asset and payroll documentation directly from the source and delivering it right into the lender’s underwriting engine. Lenders get fast, accurate data on which to base their decisions.
At Better Mortgage, the cofounder and head of operations, Eric Wilson, says “At Better, we’re focused on creating a simple and seamless journey towards home ownership. PointServ’s Digital Sourced Document technology helps us ensure the document collection process is straightforward, convenient, and secure.”
PointServ combines an intuitive user interface with proprietary technology to facilitate a streamlined 4506-T submission process that achieves lower rejection rates and higher cost savings. In fact, their 4506-T processing turn times now average two business days with IRS rejection rates of just 3%. Consequently, lenders are seeing significant efficiencies by using PointServ solutions.
At Provident Funding, the management team says, “The PointServ 4506-T solution helps Provident Funding offer some of the most aggressive pricing in the industry by significantly shortening turn times while providing considerable cost savings."
PointServ was founded by two engineers who developed the proprietary LOS for a top-25 mortgage lender and servicer. With more than 20 years of experience and an extensive background in understanding and solving the unique problems that arise as a growing lender, the founders decided to create a solution that was easily accessible for everyone.
When companies first step into automation, it can be a daunting and expensive undertaking. “That is why we built PointServ as a SaaS product, so that lenders could dive in free from startup costs or integration fees while simply using the staff they have on hand. If lenders prefer, we offer an open API so lenders can fully integrate our solutions into their origination workflow on their own schedule,” said Iordan Gavazov, co-founder of Poinserv.
But accessibility is just one facet of PointServ. “We created a product that not only drives efficiencies for the lender, but also creates a great experience for the end consumer,” said Gavazov. “By creating a great consumer experience we help lenders retain that customer in the future.”
As an approved Fannie Mae Day 1 Certainty vendor for tax and asset validation, PointServ helps lenders not only reduce origination turn times, but also enables them to streamline the funding process. “Our income, asset, and payroll validation process delivers the actual statements in most cases, as opposed to others who only provide the data points. Overall, we have built a way to eliminate inefficiencies in the underwriting process while reducing long-term risk,” says Gavazov.
PointServ will be at this year’s MBA’s Annual Convention & Expo, booth #456.