To help lenders quickly and easily verify income and employment information, Experian has introduced Experian Verify, an enhancement that allows consumers to share information directly from their employers’ payroll service when applying for credit, including mortgages, auto loans and personal loans.
The enhancement introduces Experian’s automated income and employment verification waterfall and helps lenders easily leverage both instant and permissioned technology with consumer consent to verify income and employment for over 85% of the U.S. workforce.
While verification of income and employment is required in mortgage lending, the practice has become more common across other types of unsecured lending. A multi-step approach is needed to help reduce dependencies on complex and costly manual verification processes.
Lenders who use a multi-step approach can keep consumers engaged while verifying income and employment information faster and more efficiently.
“With this new enhancement, we’re helping remove the burden consumers face in providing paper documentation if a lender is unable to obtain this information in a digital and automated fashion,” says John Tsefrikas, senior vice president, Experian Verification Solutions.
Through Experian’s automated waterfall: Lenders first obtain consumer consent to verify income and employment information in real time via Experian’s instant employer payroll network. If a consumer’s records are available, the lender receives an Experian Verify report in real time.
If a consumer’s income and employment information is unavailable, Experian will automatically begin the permissioned verification process, which enables consumers to share their information directly from their employer’s payroll service.
Both experiences are Fair Credit Reporting Act (FCRA) regulated, and lenders will receive the same verified income and employment report from Experian regardless of the method used to obtain the information.
Experian’s consumer-permissioned enhancement also helps lenders obtain income and employment information for a broad range of consumers, such as gig workers, contractors and government employees.