Roostify partners with Indecomm to court self-employed borrowers

Integration aimed at reducing time in middle-office mortgage operations

Mortgage technology provider Roostify is hoping to bring in more self-employed borrowers by adding mortgage automation provider Indecomm‘s automated income calculation technology, it announced Tuesday.

Indecomm’s IncomeGenius integration into Roostify’s data intelligence solutions will expand Roostify’s existing income calculation capabilities for self-employed borrowers, according to a company statement. The partnership is aimed at reducing the time in middle-office mortgage operations, in which associates usually spend long hours verifying, validating and comparing data and documents.

“Improving loan assembly and processing costs, and timeframes is an imperative for all lenders in today’s environment,” said Rajesh Bhat, co-founder and CEO of Roostify. “With the integration of IncomeGenius, we can now simplify and automate calculations for self-employed borrowers, an increasingly important use case as the gig economy expands.”

When IncomeGenius receives self-employment documents and data from Roostify beyond’s analysis assistant, which uses data from automated verification of assets (VOA), verification of employment (VOE), and verification of income (VOI), it will apply its proprietary machine learning algorithms to deliver a self-employment income analysis and generate a government sponsored enterprise (GSE) worksheet in line with guidelines by Fannie Mae and Freddie Mac

IncomeGenius will then send the information back to the Roostify beyond platform, which is displayed as a part of the interactive analysis assistant dashboard. 

The partnership between two firms comes at a time when the mortgage origination market is shrinking, led by surging mortgage rates. Mortgage analysts predict the rightsizing of the mortgage market will force consolidation and most mortgage tech firms to scale back on investment until companies figure out how bad the downmarket is. 

What opportunities do lenders miss out on by not focusing on credit

HousingWire recently spoke to Mike Darne, Vice President of Marketing for CreditXpert, who said focusing first on the borrower’s credit holds the key to winning business that other lenders won’t even see.

Presented by: CreditXpert

Roostify claims to be better positioned to weather the cyclical mortgage industry. Although it’s not yet profitable, the artificial intelligence and machine learning capabilities embedded into Roostify’s point-of-sale system platform make it competitive, Bhat told HousingWire in June. 

In January 2021, Roostify raised $32 million in venture funding, bringing its total funding to $65 million. The firm provides tech to about 200 lending institutions on its platform, including two of its investors, J.P. Morgan Chase and Santander Bank, according to Roostify. It claims to be handling $50 billion in loan volume every month. 

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