According to Veri-Tax, the VOA solution verifies a borrower's assets and deposits by electronically retrieving account data from financial institutions – resulting in reduced turnaround times associated with a paper-based verification processes. Veri-Tax says the timing of the release will help lenders comply with new Consumer Financial Protection Bureau's ability-to-repay requirements set to take effect in January 2014.
Veri-Tax explains that the VOA leverages FormFree's AccountChek, an automated verification of deposit and asset (VODA) solution for demonstrating a borrower's ability to pay back loans. VOA allows Veri-Tax customers to have online access to a borrower's bank accounts and receive real-time, accurate data about the borrower's financial profile, and VOA also flags any unusual account activity and allows the lender to continuously monitor a borrower's accounts for 30, 60, or 90 days – re-verifying the borrower's ability-to-repay right before a loan closes, according to Veri-Tax.
‘The industry is beginning to realize that verified data, collected directly from the source, objectively analyzed and presented in a standardized format, keeps fraud and errors out of the loan package and raises the standard for quality,’ says Brent Chandler, CEO of FormFree.