This document discusses how lenders can attract more borrowers through faster pre-qualifications and closing times. It notes that while digital loan applications are rising, customer satisfaction is declining. The document recommends that lenders offer fully digital experiences, thoughtfully integrate technology, and enable faster pre-qualifications. It presents solutions like digital asset and income verification from companies like Plaid that can drive efficiencies for borrowers and lenders by reducing paperwork and verification times. Best practices for lenders include verifying all consumer data upfront, asking for data only once, minimizing documents needed, providing transparency on data sharing, and maintaining a convenient process for consumers.

1. How to attract more borrowers
with faster pre-qualifications
and time to close
PRESENTED BY

2. Introductions
Jack LaMar
Plaid
Jorge Sauri
FinKube
Rick Grant
Gallardo Grant Corp

3. Agenda
• The state of digital mortgages, customer satisfaction, and more
• Areas of improvements for lenders and borrowers
• Solutions: Digital asset verification and income validation
• Best practices for faster pre-qualifications

4. Digital loan applications are on the rise, but not customer satisfaction
Source: J.D. Power, November 2017 - “Despite a Rise in Use of Digital, Mortgage Customer Satisfaction Declines, J.D. Power Finds”
43%
of mortgage customers
indicate applying digitally
in 2017, up from just 28%
in 2016
18
points year over year
decline in satisfaction
among customers
applying online
“The growing use of digital mortgage
application channels has made it possible
for the origination process to move more
quickly; however, the customer is still the
final judge of speed and quality,”
Craig Martin, Director of the Mortgage Practice at
J.D. Power

5. Digital mortgages should remain a priority for loan originators
Ability to compete with big leaders
The nation’s largest lender is a fintech lender. Can the rest afford not to keep pace?
The potential for much better customer satisfaction
While J.D. Power’s survey suggests that installing fintech alone is not the solution,
digital lending is still the payday to higher borrower satisfaction.
Speed to close and lower costs
Manual, paper driven processes can never approach the speed of digital mortgage
loan origination and consumers want faster closings.

6. Areas of improvement for lenders and borrowers
Offer a fully digital experience
A digital application isn’t enough, borrowers need to be able to quickly provide
bank statements and income history.
Thoughtful integration that doesn’t take long to implement
Technology should inform and guide the borrower, making the loan
originators jobs easier.
Enable faster pre-qualifications
Access to reliable bank data to pre-qualify borrowers faster will help
loan originators to stay competitive.

7. Digital asset verification drives efficiencies for borrowers and lenders
No more manual statement uploads
18% of home loan applicants were forced to redo their paperwork in 2016, while
nearly 24% ultimately had their closing dates postponed.
Reduce time to close
Fintech lenders reduced the time it takes to process a loan by roughly 10 days
as compared with the average processing time for mortgages.
Mitigate risks with data from the banks
Verify borrower identity with account holder information that’s on file at the banks.
Sources: Federal Housing Finance Authority; Federal Reserve Bank of New York and New York University

8. Income validation at the point of sale for increased accuracy
Verify income information provided by the borrower
This is both an accuracy check and a notification to the borrower that the veracity of
the information they provide will be confirmed.
Implement a fraud flag if the information doesn’t match
By checking the accuracy of borrower-provided information, the lender has a guard
in place against fraud.
Expedite loan processing if the information is accurate
Verifying income electronically is a quick way to ensure accuracy and allows the
lender to move the loan through the process faster.
Increased accuracy in the underwriting process
When the income verification is already in the loan file, it saves the underwriter time.

9. Income verification at the point of sale

10. Plaid’s lending solution streamlines account authentication and asset
verification for pre-qualifications
Asset verification
Multiple bank accounts are consolidated into one
report showing account ownership, balances and
transactions.
Plaid is a Day 1 Certainty™ asset verification
report supplier for Fannie Mae Desktop
Underwriter®
Servicing solutions
Boost adoption of bank payment with easier
onboarding and reduce NSFs in collections.

11. Seamless integration with your loan application
Embed Plaid into any digital experience and
repurpose data output through a customer’s
loan lifecycle.
Borrowers link their bank accounts using online
credentials, to then share their asset history
with lenders.

12. Fast and frictionless bank account linkage
• Authenticate an account in seconds
• Mobile-friendly module that is optimized for conversions
• Adaptive UX with MFA support
• Customize the experience by selecting which banks appear first
• Used by fintech innovators like Venmo, Acorns and Robinhood

13. Streamlined asset information
Account holder information
Name(s), address, phone number and email
Account filtering
Choose which accounts appear in the Asset Report
Account balances
Current, available and historical
Transaction history
Up to 24 months of transactions – data mirrors
bank statements with no alterations
Data Output
JSON or PDF (downloadable)

14. Data Transparency
Using Plaid’s Consumer Portal, borrowers are
able to review the bank data that will be shared
with lenders as part of the asset verification
process.

15. Best practices for faster pre-qualifications
• Verify all the consumer data for better product selection
• Ask consumers for data only once (if possible) – asset and income verification at the point of sale
• Minimize the number of documents that the borrower must provide
• Provide data transparency and let consumers know what to expect in the process
• Don’t lose sight of the benefits to the consumer – make it convenient!

16. Thank you