How Mortgage Lenders Can Adapt Verification for the Evolving Workforce

Traditional income verification failing to adapt to the evolving workforce? Learn how The Work Number® helps lenders stay ahead.

The traditional 9-to-5 job is no longer the norm for millions of Americans. The “Great Resignation” sparked a mass exodus from cubicles, with many choosing to embrace the flexibility and autonomy of freelance gigs, side hustles, and remote work. This shift has not only transformed the way we work but also how we prove our income and employment, especially when applying for a mortgage.

For mortgage lenders, this presents a unique challenge. The tried-and-true methods of verifying income – think pay stubs and W-2s – are no longer sufficient for a growing segment of borrowers. If you're still relying solely on these traditional methods, you risk alienating potential customers and missing out on valuable business opportunities.

A Diverse and Dynamic Workforce

Today's workforce is more diverse than ever before. We have freelancers juggling multiple clients, digital nomads working from exotic locales, and entrepreneurs building businesses from their home offices. This new normal demands a fresh approach to income verification, one that can accommodate the varied and often complex income streams of modern borrowers.

The Limitations of Traditional Verification

Traditional verification methods are often ill-equipped to handle the nuances of today's workforce. Pay stubs might not exist for freelancers, and W-2s may not accurately reflect the full income picture for those with multiple income sources. Additionally, verifying employment for remote workers can be tricky when traditional employer references are not readily available.

This gap between traditional verification methods and the evolving nature of work poses a significant challenge for lenders. It can lead to delays in loan approvals, increased risk of inaccurate information, and a frustrating experience for both borrowers and lenders.

Embracing Digital Solutions: The Work Number® Advantage

In this digital age, lenders need a verification solution that's as dynamic and adaptable as the workforce itself. The Work Number from Equifax provides just that.

The Work Number is a powerful tool that harnesses a vast network of 670 million employment and income records contributed by 3 million employers and payroll providers, providing instant access to verified income and employment information. This means no more chasing down paperwork, deciphering confusing documents, or playing phone tag with employers. With a few clicks, lenders can access reliable data directly from the source.

This streamlined process not only saves time and resources but also enhances the borrower experience. No one enjoys gathering and submitting piles of documents, especially in a world where instant gratification is the norm. The Work Number helps to effortlessly verify income and employment, making the mortgage application process smoother and less stressful.

Beyond Verification: Building Trust and Expanding Your Reach

The benefits of The Work Number extend beyond mere convenience. By providing lenders with up-to-date and reliable data, it helps mitigate risk, streamline approvals, and build trust with borrowers. This can lead to increased customer satisfaction, loyalty, and ultimately, a thriving mortgage business.

Moreover, The Work Number allows lenders to confidently assess borrowers with diverse income sources and employment histories. This opens up new opportunities to reach a wider range of borrowers, including those who may have been previously overlooked due to the limitations of traditional verification methods.

The Future of Mortgage Lending: Embracing the Change

The way we work is changing, and so is the way we verify income and employment. By embracing digital solutions like The Work Number, mortgage lenders can adapt to this new normal, enhance the borrower experience, and position themselves for success in a rapidly evolving market.

The future of mortgage lending is here, and it's digital. Are you ready to embrace the change?