FiServ Case Study
FinLocker AllData® Aggregation Helps Low- to Moderate-Income Consumers Plan for Their Financial Futures While Enabling Lenders to Earn Valuable CRA Credits
First-time homebuyers – particularly those of low- to moderate-incomes – often need additional support as they prepare for their first mortgage and other financial goals. At the same time, banks have an obligation to meet Community Reinvestment Act (CRA) requirements that assess how well they meet the needs of historically underserved communities.
The partnership between Fiserv and FinLocker allows lenders in the FinLocker network to incorporate financial data aggregation and personal financial management tools from Fiserv into the loan preparation process for low- to moderateincome borrowers. This enables consumers to better plan and prepare for their financial futures well in advance of a loan application.
FinLocker is a secure financial data and analytics platform that electronically captures and analyzes self-reported and verified borrower data, such as assets, liabilities, income, loan purpose, property, occupancy, sales price, down payment, income, taxes, credit and other information. FinLocker helps lenders convert leads to loans and establish customers for life through customized promotions in its reusable financial locker.
With FinLocker, consumers manage their financial life with FinLocker’s digital financial assistant. Helping track goals and budgets, FinLocker opens up a host of advantages including the receipt of a regularly updated credit score, credit report and credit monitoring with alerts.
FinLocker empowers consumers to start, achieve and continue their homeownership journey. FinLocker is a secure, transactional personal financial management tool that aggregates a consumer’s financial data adding the ability to analyze, recommend and streamline financial transactions. Consumers benefit from personalized recommendations, mortgage and financial education, credit score reports and monitoring, cashflow analysis, budgeting, goal planning, and data sharing. Lenders utilize FinLocker to nurture leads, cross-sell value-add products, reduce costs, and create customers for life. The company is headquartered in St. Louis, Missouri. For more information, visit www.finlocker.com.
Consumers also gain access to financial education videos, a borrowing “readiness” aid, cash flow analysis, home valuation with comparable sales and document storage. FinLocker provides personalized offers for consumers, while also allowing users to streamline their loan transactions.
Personal Financial Management Built on an API-Based Architecture
A consumer’s FinLocker is a planning and financial management platform that provides them with the ability to view all of their account balances, as well as all transactions in a single location. They can set budgets and goals, chart their progress and get insight into their credit situation.
By using AllData Aggregation APIs, FinLocker is able to customize API responses based on the unique data request of individual providers. It is an adaptable, customizable solution that can quickly respond to meet the needs of lenders in FinLocker’s network for deep, reliable, on-demand data from more than 18,000 sources aggregated by AllData Aggregation.
AllData Aggregation was originally used by FinLocker as a tool for lenders to perform asset verification. The success of that initial engagement evolved into an effort to support more robust underwriting capabilities. In 2018, FinLocker was approved by Fannie Mae as a provider of asset verification reports as part of their Day 1 Certainty® initiative. This means lenders using the FinLocker platform can complete asset verification via Fannie Mae’s Desktop Underwriter® (DU) and are eligible to receive Day 1 Certainty from Fannie Mae, which includes representation and warranty relief.
“When we originally used AllData Aggregation from Fiserv, we were excited about the options it gave us to help lenders create a digital borrowing process. However, we quickly saw a larger opportunity by repositioning the financial locker and providing to consumers before they apply for a loan. The real benefit we can provide is to nurture, prepare and educate consumers so they are better informed and prepared to act when the time is right.”
Peter Esparrago – Co-Founder & CEO FinLocker
FinLocker Delivers Planning and Budgeting Tools at Scale
Working with Fannie Mae and Fiserv in 2018, FinLocker received approval for AllData asset information to be used with the FinLocker asset verification solution as part of Fannie Mae’s DU validation service. Lenders using FinLocker’s asset verification reports via DU are eligible to receive Day 1 Certainty from Fannie Mae.
In addition, FinLocker is partnering with various housing advocacy groups, some of whom collaborate with housing counseling and other assistance for potential low- to moderate-income first-time homebuyers to ensure that financial lockers are made available to the consumers who need them most.
“In my prior role as an executive at Flagstar Bank, I saw the value of FinLocker in providing consumers, especially those who are underserved, with an intuitive and insightful platform to assist in their journey towards homeownership. This was one of the many valuable components I saw in FinLocker, which led me to join the company. Since joining we have engaged several community banks to help them improve their CRA rating by partnering with FinLocker.”
Brian Vieaux – President FinLocker