Finicity's technology aggregates data on accounts from thousands of banks and financial institutions and has the potential to offer lenders real-time access to information on a customer's assets, income and ability to pay.
Consumers will be able to apply for mortgages without having to provide reams of paper-based verification documents during the underwriting process. Instead, they will only need to authorize lenders to view their account data, the companies said. Therefore, the new service could reduce the underwriting process from as many as 70 days to up to 10 days.
Also, the service benefits consumers with little or no credit history as it enables lenders to access alternative data, which can be used to demonstrate whether they would be able to repay a loan. This includes information such as their rent payments and utility and phone bills.
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