February 23, 2023

An easier way to automate asset and income verification for lenders

Julie Shin and Katie Randolph

Between the changing macroeconomic landscape and the downturn in historically high mortgage loans, improving the manual loan approval process is more important than ever. As a result, 51% of mortgage lenders said that they are accelerating their plans for digitization according to an internal survey performed by Ipsos on behalf of Plaid. Fortunately, there are more ways to do that than ever with seamless asset and income verification solutions that are proven to reduce manual tasks for both the borrower and lender. 

Introducing updates to our mortgage offering

Plaid offers a robust array of these digitization solutions–used by some of today’s largest mortgage lenders–from identity and asset to income verification. Now, we are excited to announce highly-requested updates to our Assets solution for mortgage lenders. 

Plaid Assets makes it easier for borrowers to connect their bank accounts and share up to two years of transaction history, balance information, and bank account ownership. This single-consumer connection to multiple sources of data allows lenders to streamline their loan application process–saving them valuable time and money. To add to that impact, we’re now automating the process even further, making it easy for lenders to share this source information with secondary market investors, under a new partnership with Freddie Mac.

With Plaid Assets, mortgage lenders can: 

  • Send report to Freddie Mac's Loan Product Advisor® asset and income modeler (AIM) for verification of assets and income using direct deposits. Plaid Assets supports the AIM technology solution to automate the assessment of borrower assets and income using direct deposits. This technology speeds up lenders’ loan underwriting processes and allows lenders the opportunity to receive representation and warranty relief on loans underwritten using Plaid Assets data. Plaid Assets is already Day 1 Certainty®–certified with Fannie Mae.

  • Access information from multiple accounts across depository, credit, and investments and securely share to permissioned secondary market investors. Lenders can retrieve transaction-level data across a variety of consumer accounts in JSON or PDF. These reports can be tailored to only give underwriters access to the data history (e.g. 60 days) they need, while providing longer history (up to 730 days) to secondary market investors like Freddie Mac or Fannie Mae through an audit copy token. This allows secondary market investors to safely and securely retrieve the data they require directly from Plaid in order to automate assessment of direct deposit income and assets. 

Expanding the partner ecosystem

“Plaid is thrilled to add Freddie Mac to our partner ecosystem,” says Mike Saunders, Head of Credit at Plaid. “We consistently hear from lenders that they want to update their processes, but aren’t sure where to start. This integration with Freddie Mac ensures that lenders can collect asset and income data with one single integration, and share that data with partners like Freddie Mac to automate verification.”

“Adding Plaid as an approved service provider will help simplify the mortgage process for countless borrowers and lenders,” explains Daniel Miller, Single-Family Director of Strategic Technology Partnerships at Freddie Mac. “Borrowers can spend less time worrying about tracking down bank statements and paystubs, while lenders can spend less time reviewing documents and get individuals into their homes faster.”

Ready for the future

The future of today’s lending experience is advancing at a rapid pace. Plaid is committed to helping lenders navigate updating their processes with industry leading solutions that will reduce costs and friction, accelerate decision-making, and streamline the entire lending journey. 

Contact us to learn more about how we can better serve your lending needs.