Staircase has launched a low-code marketplace that allows lenders to quickly build applications that automate mortgage processes.
The first template available in the marketplace is PreApproval, which lenders can use to create a customized, white-labeled, web- and mobile-enabled pre-approval application process for their borrowers in just 30 minutes.
“Empowering borrowers to self-qualify by uploading their own information via third-party verification providers and authenticating their bank accounts makes for a much better borrower experience,” says Adam Kalamchi, Staircase’s CEO and founder. “It also saves time, reduces underwriting costs and generates superior documentation, lowering the risk for defaults and putbacks. And it’s so easy to deploy that lenders can do it themselves.”
Staircase’s PreApproval template requires lenders to upload their logo and brand colors, enter their LOS credentials, and decide on the question sequence and options offered to the borrower. PreApproval then generates the application flow and provides a custom web link that lenders can use on their own websites and send to prospective borrowers. Over the next several months, Staircase plans to release other templates that will enable lenders to further automate mortgage processes.
By enabling borrowers to quickly self-qualify for loans, PreApproval eliminates the typical back-and-forth that occurs between lenders and prospective homebuyers before the lender knows whether the borrower even qualifies for financing. Staircase PreApproval integrates with more than 10 income, employment and asset verification providers, as well as mortgage product and pricing engines, a lender’s loan origination system (LOS), and both Fannie Mae and Freddie Mac.
PreApproval enables lenders to leverage three ways to collect data – borrower-stated information, PDF uploads and through API digital sources – allowing for gradual borrower adoption of digital tools. A payment is collected from the borrower and allocated to the closing cost which increases borrower commitment and close rates. This addresses the problem lenders often face when dealing with stated information versus confirmed data. Stated information is less accurate, making it less likely lenders will be able to pre-approve a mortgage early in the process or convert leads into loan applications.