Credit decisioning services provider FormFree has joined forces with fintech firm Ocrolus to provide lenders with income verification solution.
Ocrolus is a fintech infrastructure company that transforms documents into actionable data.
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Under the arrangement, Passport all-in-one asset, employment and income verification service of FormFree will now feature API calls to Ocrolus for paystub and W-2 tax form collection and data verification.
The partnership will enable lenders to collect certain data points for the asset, employment and income verification of applicants via FormFree’s Passport solution.
Passport enables lenders to validate paychecks and W-2 tax forms submitted by borrowers in PDF or photo formats. It uses API to collect this information via Ocrolus’ servers.
Passport collects this data for employment and income verification and to validate that the stated employer is a real company.
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By GlobalDataThe solution also allows lenders to pull the payroll data directly from the organisations with the permission of the loan applicants.
FormFree CEO Brent Chandler said: “Income verification is a critical factor in assessing a borrower’s ability to repay a loan.
“Enabling lenders to corroborate images of paystubs against digital data sources allows them to make credit decisions with a high level of confidence.”
Loan originators can also use this service to assess an applicant’s ability to repay the loans. It compares the paystub data with the asset data to calculate the annual net value of the applicants.
To process the loans, the data is then pushed into lender systems such as point-of-sale (POS) platforms, loan origination software (LOS) and automated underwriting systems (AUS).
Ocrolus CEO Sam Bobley said: “FormFree is a leading fintech that we are proud to partner with; incorporating our capabilities within Passport provides lenders with precisely accurate data for financial decisioning.”
