The latest upgrades in the Day 1-certainty products will be simplifying the mortgage process for lenders and services. It is believed that with these upgrades the housing finance system will become stronger and safer. Moreover, it will gracefully suffice customer needs by increasing certainty and lower costs. Since its introduction last year, they have worked tirelessly to build on the benefit it provides. By virtue of listening and learning from their customers who have signed up for one or more of Day 1 certainty services, it has been using the feedback received for making the mortgage process faster, less expensive, and easier for everyone.
The institute is committed to delivering innovative solutions that will be helping customers to solve important business challenges in the mission to create a stronger and safer housing finance of the 21st century. With the introduction of new Single Source Validation, a service that is now on the pilot will allow lenders to validate a borrower’s income, assets, and employment through one report with source data rather than multiple paper documents. Immediate benefits of this step will be experienced in the form of increased savings making it easier to disburse loans.
Its new feature of servicing marketplace will be connecting services to sellers that are interested in collaborating with each other with the aim of serving transfers when the seller will be loaning to Fannie Mae. This will render more transparency in the loan origination while removing cost and friction. Companies that are participating in the pilot program will get the benefits of these programs early. Single Source validation is a big boost to the broker channel and it hopes to offer better service to its client through this innovative technology.
Till this date, Fannie Mae has done a commendable job in making the loan process better for borrowers. The pilot project has witnessed several positive outcomes in the early stages of testing with borrowers and brokers reporting of considerable improvement in the speed and ease of closings. With this one, brokers can communicate with clients remotely and receive documents electronically. It is expected that the process will become less cumbersome and substantially bring about a reduction in the stress on clients. As the entire mortgaging process becomes online companies can focus on methodologies for improving transparency and speed. With this system, clients can provide more financial information in fewer steps that will bring about a significant reduction in the time needed for committing their mortgage.
Further, with this platform lenders can order, manage, and monitor digital verification reports. A company can digitalize lending through direct access to financial account information with due permission from the borrower. Through advantage of real-time account data directly from the bank, the creditor can provide a comprehensive view of the borrower’s financial status and generate an accurate verification in minutes. The only thing that lenders need to take care of in this pilot project is to ensure that they order the appropriate verification reports from the participating vendors.