MBA NewsLink Q&A: Steve Schulz on Unlocking Efficiency in Mortgage Verification

In today’s competitive mortgage market, lenders are under pressure to reduce costs, speed up closings, and deliver a better borrower experience–all while staying compliant with evolving investor requirements. MBA NewsLink recently spoke with Steve Schulz, EVP of Product Management at Informative Research, Garden Grove, Calif., who shared his perspective on emerging trends, underused opportunities like the pre-close VOE refresh, and how technology such as AI-assisted verification could shape the future of loan processing.

MBA NewsLink: How has the mortgage verification landscape shifted recently?

Steve Schulz: In the last two years, we’ve seen a major shift in how lenders approach verification, thanks largely to updated GSE guidance. Consumer-permissioned verification—where borrowers grant direct access to their payroll or bank data—has moved from experimental to mainstream. The quality of that data is no longer the question. Now, the real issue is how to seamlessly get borrowers to authorize access at the right point in the loan flow.

MBA NewsLink: Why is borrower engagement so pivotal, and how can lenders improve it?

Steve Schulz: Borrowers tend to engage more when the request feels natural in the application process. One effective approach is embedding the verification prompt within the point-of-sale system, accompanied by messaging about data security and speed-to-close advantages. Done well, it frames the request as part of the journey rather than an interruption, and that significantly boosts participation.

Increasingly, we see borrowers willing to share data this way as the widespread use of peer-to-peer payment platforms such as Venmo and Zelle has improved understanding and trust in account linking. However, evolving authentication methods can be a limiting factor on the total number of successful connections possible. That’s why orchestrating multiple verification services within a waterfall configuration is key.   

MBA NewsLink: When consumer permissioned solutions aren’t enough, how do lenders fill verification gaps?

Steve Schulz: The first go-to method is usually instant database verification because it’s fast and easily integrated. But coverage varies, and price can be a barrier. When that route doesn’t work, manual methods still play a critical role.

Whether it’s traditional outreach or secure digital uploads, the most efficient lenders adopt a hybrid model: start with automated verification, then go manual when needed. This layered approach balances speed, cost and completeness without overburdening borrowers.

MBA NewsLink: What operational shortcut are many lenders overlooking?

Steve Schulz: One of the biggest missed opportunities is using the same digital data connection for asset verification to also meet the 10-day pre-close verification of employment (VOE) requirement. Under current GSE guidelines, if you’ve already obtained direct deposit data for asset verification, you can refresh that connection late in the process to satisfy pre-close VOE. That eliminates a separate verification step, avoids re-engaging the borrower, lowers costs and reduces last-minute delays.

Fannie Mae’s Desktop Underwriter® and Freddie Mac’s Loan Product Advisor® now allow lenders to use a single verification order to produce both initial verification and deposit-based VOE, which can significantly streamline pre-close workflows. Adoption is growing, but it’s far from standard practice.

For lenders focused on reducing cost-to-originate and enhancing borrower experience, this is one of the most impactful operational improvements available today, as it’s compliant, seamless and investor-ready.

MBA NewsLink: What emerging verification trends should lenders be watching?

Steve Schulz: AI-assisted verification is one to watch. We’re starting to see tools that can guide the verification process in real time by choosing the optimal method based on borrower profile, available data and cost parameters. These AI assistants could prompt when to attempt consumer permission, when to fall back to an instant database, and when to route to manual verification. They can also flag anomalies in data patterns that might otherwise go unnoticed, helping lenders avoid potential repurchase risk.

In the future, AI assistants could integrate directly with LOS and POS platforms to orchestrate verification end-to-end, dynamically adjusting strategy to meet investor requirements and closing timelines. That’s where this technology could be transformative not just in reducing time and cost, but in actively managing verification quality and compliance from the start.

Today, a practical application of AI in verifications is leveraging the data from millions of successfully completed verifications to understand the most efficient path to reach the right individuals within employer HR organizations for verification response or supplemental information—a new twist on the traditional manual verification process, now possible across millions of employers with AI.

MBA NewsLink: Any advice to lenders looking ahead?

Steve Schulz: Build flexibility into your verification strategy. Use consumer-permissioned data where you can, but understand its limitations and supplement with instant and manual methods as needed. Always look for ways to get more value from the tools and data you already have; sometimes the best improvements don’t come from adding new technology but from using what’s already in place more effectively.

In a competitive market, the lenders who adapt quickly and make smart operational choices will be the ones who consistently deliver speed, efficiency and a better borrower experience.

(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.)