MBA Premier Member Editorial: Transforming Mortgage Workflows with Intelligent Verification
Shelley Leonard is President of Xactus, a fintech specializing in verification solutions for the mortgage and financial services industries. She is also a member of the Xactus Board of Directors.
Lenders have faced it all: Sudden market shifts. Changing interest rates. Spikes or plummets in loan volume. Through it all, they are expected to maintain quality, comply with regulations, and deliver great customer experiences.
Traditional verification methods are no longer living up to the challenges of modern mortgage lending. But what if verification—one of the most time-consuming parts of the lending process—could actually become a competitive advantage?
Intelligent Verification is redefining how lenders manage their verification workflows. It’s a technology-driven approach that harnesses real-time insights and automated actions to speed up the verification process and deliver the right data at precisely the right time. It doesn’t simply digitize paperwork; instead, it helps lenders rethink when, how, and what they verify throughout the lending journey.
Verification: Then and Now
While traditional verification has brought us this far, it’s no longer the best tool to get lenders where they need to go. Here’s how Intelligent Verification compares to traditional verification methods:
Point-in-time reporting vs. dynamic workflows: Traditional verification relies heavily on static reports presenting a single snapshot in time. In contrast, Intelligent Verification enables dynamic data flows that allow for decision-making based on real-time information. Lenders can tailor their credit monitoring for specific loan types, with options for soft pulls during pre-qualification and more comprehensive reports when necessary.
Rigid data extraction vs. cascaded “next best” actions: Traditional verification often involves jumping from database to database to get all the required information–a manual process that wastes time and resources. Intelligent Verification offers cascading workflows that automatically progress through verification options without manual intervention.
Static, manual processes vs. responsive workflows: The traditional process often required front-loading all verification activities, regardless of whether a loan application would proceed. Intelligent Verification’s responsive workflows implement staged verification that matches the applicant’s journey, reducing wasted resources and decreasing costs per loan.
A Layered Approach to Technology
The best part about Intelligent Verification is that it works on top of a lender’s existing mortgage tech stack, enhancing (not replacing) what they already have.
This approach is a bit like renovating a house room by room instead of tearing it down. Lenders can start by upgrading the areas that need the most attention and expand to others as needed. Many end up transforming their entire verification process over time, creating efficiencies at every step.
What’s particularly helpful is how these tools connect with multiple data sources behind the scenes. The platform handles the complexity behind the scenes, presenting information to lenders in one simple interface.
The Tangible Benefits of Intelligent Verification
Lenders who have already adopted Intelligent Verification in their day-to-day processes have reported noticeable benefits, including:
Benefit #1: Increased Speed
Intelligent Verification speeds up verification timelines. Tasks that once took days—like collecting Letters of Explanation—can now be completed in minutes through automated requests and secure online submissions.
The reduction in manual processes also means less back-and-forth with applicants and fewer delays waiting for documentation, resulting in faster overall loan processing and improved customer satisfaction.
Benefit #2: Enhanced Efficiency
Lenders who use Intelligent Verification say they’ve been able to eliminate redundant processes and automate routine tasks. For example, applicants can receive a secure link to approve access to their IRS and employment data, eliminating the need for manual submissions and review for income and employment verifications.
This automation allows lending teams to focus on higher-value activities that truly require human judgment, like complex underwriting scenarios or customer relationship management. The result is a more productive staff and a more efficient operation overall.
Benefit #3: Reduced Data Waste
Perhaps one of the most significant benefits of Intelligent Verification is its ability to reduce wasted time and resources throughout the verification process. By implementing staged verification, lenders can avoid unnecessary expenses on applications that won’t proceed.
For example:
• Using single-bureau credit checks before ordering comprehensive tri-merge reports
• Implementing employment verification waterfalls that start with less expensive options
• Tailoring verification requirements to loan types, with streamlined processes for programs like FHA/VA refinances that don’t require full income verification
This targeted approach means lenders pay only for the verification data they actually need, significantly reducing per-loan costs while maintaining quality and compliance.
The Future of Intelligent Verification
What’s on the horizon for verification technology? The future looks bright—and increasingly smart.
Artificial intelligence will help break down barriers to create a more connected mortgage industry. Different systems and services will communicate seamlessly, eliminating those frustrating gaps where information gets stuck or lost. This connectivity means smoother experiences for borrowers and fewer headaches for lenders.
Borrowers will also gain more control over their information. Advanced security measures will allow borrowers to securely store verification documents and grant temporary access to lenders. This speeds up the lending process and reduces borrowers’ concerns that their data will be compromised.
Embracing the Verification Revolution
When it comes to verification, there’s a real opportunity to make meaningful progress. By rethinking when and how lenders verify borrower information, they can create a process that’s faster, less expensive, and more satisfying for everyone involved.
Today’s unpredictable market means the ability to adapt quickly is perhaps the greatest competitive advantage. Lenders who can verify borrower information efficiently—getting what they need when they need it—are better positioned to weather tomorrow’s challenges. Whether rates rise or fall, or volume surges or dips, Intelligent Verification provides the flexibility lenders are seeking.
The mortgage industry’s future belongs to those who can balance thoroughness and accuracy with efficiency. Intelligent Verification isn’t just a new tool; it’s a different way of thinking about the entire lending journey, centered on getting the right information at exactly the right moment.
(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes submissions from member firms. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)
