Dark Matter Technologies has released
a new, automated workflow in the Empower loan origination system (LOS) designed
to make it easier for lenders to identify and qualify loan applicants based on
their positive rent payment history, according to a company press release.
The workflow software was
developed in partnership with Informative Research, utilizing the positive rent
payment history enhancement in Fannie Mae’s Desktop Underwriter (DU) in the
Empower LOS and configured to allow lenders to improve pull-through for
borrowers with a history of consecutive rent payments, the company indicated.
Fannie Mae’s positive rent
payment history enhancement was introduced to promote equitable and sustainable
homeownership among renters with limited credit histories. The software leverages
12-month asset verification reports furnished by authorized providers such as
Informative Research’s AccountChek, and by using an integrated LOS such as
Empower. According to Fannie Mae, as of Q4 2023, 5,600 mortgage applications
have benefitted from the borrower’s positive rent payment history by being
deemed approve-eligible. Forty-one percent of the applicants who benefitted
identified as Black or Latino/Hispanic.
“Using positive rent payment
history in credit evaluations is one of several ways Fannie Mae is improving
access to affordable homeownership that supports our commitment to our mission
and strong credit underwriting standards,” Fannie Mae Vice President of
Single-Family Digital Management Solutions Peter Skarnulis said in the release.
“This new workflow makes it more practical for lenders to take advantage of
this feature, which can help more first-time homebuyers qualify for a home
loan.”
The Empower LOS makes it easy
for lenders to consider a borrower’s positive rent payment history early in the
loan process using business-friendly configurations rather than code. The
release offers a bulleted list explaining how the system works behind the
scenes:
·
When a loan application is submitted to DU
through Borrower Digital (or another front-end application integrated with the
Empower LOS) and does not initially receive an approve-eligible recommendation,
DU will determine whether rent payment data could provide a more favorable
recommendation.
·
If the DU findings recommend evaluating the
applicant's rent payment history, the automated engine within the Empower
system will suggest obtaining a 12-month asset verification report through
AccountChek. The Empower LOS plays the role of conductor, ensuring that asset
data gathered, with consumer permission, from AccountChek is routed for
resubmission to DU at exactly the right point in the process as identified by
the originator.
·
By automating an additional opportunity for
borrowers to receive loan approval and move forward, Dark Matter and
Informative Research are contributing to Fannie Mae’s ongoing efforts to help
more renters realize their dream of homeownership.
“This is a prime use case of
how business process automation can create value not only for lenders but for
borrowers as well,” Dark Matter Technologies CEO Rich Gagliano said in the
release. “Our task-based orchestration engine allows lenders to improve
pull-through for borrowers with nontraditional credit references without
burdening loan officers or processors.”
“Enhancements to lender
workflow that make innovative and equitable solutions practicable are a huge
step toward making meaningful change,” Informative Research SVP of Marketing
and Product Craig Leabig added. “Our goal is to blend technology with business
process and verification products to improve outcomes.”