Equifax announced a new product integration with a British software firm that should lead to expedited underwriting of mortgage borrowers working at small- and medium-sized businesses, it said.
The Atlanta-based data provider's digital income and employment verification tool, The Work Number, which provides the data to lenders and underwriters, is now available to companies using the payroll-service platform offered by Iris Software Group.
The partnership brings the digital capabilities of The Work Number to Iris' client base of small and medium-sized businesses, allowing them to instantly deliver the employment history and salary of borrowers. Along with faster verification, the information can be transmitted outside traditional business hours, Equifax said.
"This integration with Iris Payroll Relief software further demonstrates our commitment to bringing the benefits of The Work Number to employers of all sizes and their employees," according to Joe Muchnick, senior vice president of employer services and talent solutions at Equifax Workforce Solutions, in a press release.
Mortgage borrowers often cite the time it takes to close a loan as one of the primary pain points in the borrowing process, with data verification proving to be among the most cumbersome aspects. During the home lending boom of 2022, it took 49 days to process a refinance according to the Federal Housing Finance Agency.
"Iris is one of the U.K.'s largest private software companies, and as they rapidly expand into the Americas we are proud to help them meet the needs of their U.S. customers," Muchnick added.
According to the Small Business Administration, enterprises of 500 employees or less account for approximately 46% of the private-sector workforce, with human resource functions often handled by the proprietors themselves. The addition of The Work Number could speed up the underwriting process for as many as 1 million U.S. borrowers, Equifax said. Its tool currently includes data from 2.8 million employers.
"By integrating this powerful tool, we are empowering our clients to assist their clients in purchasing their first home, starting a new job or buying a car," said Jim Dunham, president and general manager of Iris Americas. The Work Number is already available on Iris' platform at no additional cost.
The agreement between Equifax and Iris comes at the same time that Floify, the point-of-sale systems provider, announced its own new integration with technology platform Informative Research, as the two businesses unveil an employment and income verification waterfall process. The technology will provide lenders on Floify's platform with the ability to request multiple reports in a streamlined process as needed and eliminate the steps involved in obtaining them individually. Lenders also will be able to specify the report providers in the order they wish based on their own needs and cost preferences.
"This unique technology will help our clients reduce costs, which is especially important today as verification-related fees increased significantly in the past three years," said Sofia Rossato, president and general manager of Floify.
