Cloudvirga, a leading provider of digital
mortgage point-of-sale platforms, recently announced it has expanded its
strategic integration with Fannie Mae’s Desktop Underwriter (DU)
solution to include the newly announced early assessment enhancement, according
to a company press release. The new enhancement is designed to improve and
streamline a lender’s pre-qualification process, making it easier for lenders
to assess borrowers’ loan eligibility and provide information earlier in the
process to make decisions on their mortgage options.
Historically, lenders have used hard credit pulls
and fully completed applications during
pre-qualification to determine a borrower’s credit worthiness, which created an
alert on the borrower’s credit file, the release explains. DU early assessment
allows lenders to get a conditional recommendation from DU, as well as early
notice of eligibility information, by using a soft credit pull from a single
credit bureau and an automated and abbreviated application that allows a
reduced dataset to assess borrower qualifications. As a result, the process is
much faster and, because it avoids a hard credit pull, preserves borrowers’
credit scores, protecting their credit worthiness. In addition, the soft credit
pull protects borrowers from being approached with unwanted marketing
solicitations.
“By harnessing the power of data-driven
insights and automation, this new enhancement ensures a more efficient,
transparent and borrower-friendly mortgage origination process for all
stakeholders involved,” Cloudvirga Chief Executive Officer Maria Moskver said
in the release. “A majority of borrowers who are prequalified by a lender end
up using that lender for their mortgage origination. Simplifying and
streamlining the pre-qualification process will help lenders gain a competitive
advantage, improve the customer experience that they can deliver and, at the
same time, lower their customer acquisition costs.”
“At Fannie
Mae, we continue to offer more ways for mortgage lenders to improve the
homebuying experience,” said Peter Skarnulis, Vice President of Single-Family
Digital Management Solutions at Fannie Mae. With this latest offering, lenders
can receive an early assessment from Desktop Underwriter with a soft credit
report when they’re pre-qualifying borrowers, which won’t impact their credit
score.”