Automated verification of deposit and asset (VODA) solution catching on as lenders move to comply with new rules while reducing wasteful, paper-based processes
—Dodd-Frank and Consumer Financial Protection Bureau regulations require financial information be supplied and verified—
Athens, Georgia – April 15, 2013 – FormFree Holdings Corporation, a provider of technologies that help financial institutions determine the ability of their customers to pay back loans, announced that borrower assets verified by AccountChek, the mortgage industry’s leading automated verification of deposit and asset (VODA) solution for demonstrating the ability of borrowers to pay back loans, have passed the $100 million mark.
Used by mortgage lenders and other providers of consumer credit, AccountChek automates the verification of a borrower’s deposits and assets in the loan process by providing instant digital statements from more than 15,000 financial institutions. AccountChek delivers VODA reports in minutes through a secure web and mobile portal, eliminating the need for borrowers to submit endless paper copies of bank statements and investment statements, improving the customer experience while reducing loan file errors, and eliminating the risk of falsified bank statements.
“Reaching this milestone is a significant step for us, and we feel it’s only the beginning,” said FormFree Founder and CEO Brent Chandler. “Historically, asset verification has been a slow and costly manual process that is riddled with deficiencies and is not trackable. AccountChek eliminates the hassle for consumers and loan processors and reduces risk by getting real-time, automated digital data about a borrower’s accounts straight from the source—the banks themselves. As lenders face increasing regulations combined with mounting pressure to make better credit decisions, AccountChek is the simple, smart solution whose time has come.”
Company officials attributed AccountChek’s growth to the increasing mortgage fraud and tighter lending guidelines. In fact, according to the Interthinx Mortgage Fraud Risk Index, the national risk for fraud is at its highest peak since 2009 and rose 16% in the fourth quarter of 2012 alone. Industry experts say that doctored bank statements are a common form of borrower fraud, which ends up costing lenders significant time and expense.
The Consumer Financial Protection Bureau recently announced new regulations, effective January 2014, that require verification of ability to repay (ability-to-pay, or ATP) on all residential mortgages, and define, as a regulatory safe harbor, a class of mortgages (Qualified Mortgages, or QM) that meet the ATP requirements. AccountChek allows lenders to comply with the new regulations and verify the borrower’s ability to pay in a simple, fast and efficient manner.
With AccountChek, lenders receive secure, web-based real-time access to detailed bank statements. These comprehensive account verifications show all itemized transactions and provide cash flow calculations and account summary reports that highlight unusual activity and red flags for the underwriter’s review. These reports also satisfy Fannie Mae’s Form 1006 Verification of Deposit (VOD) requirements. Complete individual VOD reports are delivered in seconds and are available in multiple digital formats, including PDF, for lenders to store in their digital vaulting systems.
For more information about AccountChek, visit www.AccountChek.net
FormFree Holdings Corporation is a privately-held technology provider that specializes in helping financial institutions determine the ability of their customers to pay back loans. FormFree has partnered with Equifax and other industry-leading credit and financial service providers to collect, certify and analyze data and help customers make better lending decisions. The company was founded in 2008 and is based in Athens, Georgia. For more information, visitwww.FormFree.com.