Mortgage tech provider Floify’s partnership allows lenders to perform Freddie Mac- and Fannie Mae-compliant verifications without leaving the Floify platform, executives announced Thursday.
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Mortgage technology provider Floify has partnered with Argyle to allow lenders to verify borrowers’ income and employment data from within the Floify platform, “without the hassle of managing additional vendors,” the companies say.
Sofia Rossato
Verification of income and employment (VOIE) “has been a pain point for many of our customers, with legacy verification methods achieving low success rates at a high price point,” Floify President and General Manager Sofia Rossato said in a statement Thursday. “These methods are ill-suited to today’s workforce and too expensive at a time when origination costs have risen to untenable levels.”
Floify Verify, the company’s native VOIE service powered by Argyle, allows lenders to view borrower-permissioned records such as pay stubs and W-2s “at 60- to 80-percent less cost than legacy providers and manual verification methods,” Floify claims.
Argyle, which announced a $30 million Series C raise in March, is an authorized report supplier to both Fannie Mae’s Desktop Underwriter validation service and Freddie Mac’s Loan Product Advisor asset and income modeler (AIM).
Floify rolled out verification of income (VOI) and verification of employment (VOE) waterfall technology with Informative Research last year, which enabled lenders to view the results of multiple verification reports from different providers.
In April, Floify announced an integration with Truv, a consumer-permissioned data platform, allowing borrowers to electronically verify their income and employment when applying for a loan.
It’s been a busy year for Floify, which followed up the December launch of its Broker Edition platform for mortgage brokers (which integrates with nation’s largest mortgage lender, United Wholesale Mortgage) in March with the release of Floify Lender Edition, which offers flexible per-loan pricing.
In April, Floify announced enhanced integrations with customer engagement platform Total Expert to allow loan originators to send pre-populated loan applications to borrowers.
Floify hired nCino, Ellie Mae, Unify and Lenders One veteran Jason Mapes as head of sales in May, and one month later became a preferred partner of The Mortgage Collaborative, a cooperative that helps small to midsize mortgage lenders obtain services at a discount.
Floify is a subsidiary of Porch Group Inc., which went public in a December 2020 SPAC merger and went on a buying spree the following year.
Porch spent $346.3 million on acquisitions in 2021 on companies including insurance agency Homeowners of America ($114.8 million), Floify ($95.4 million), home warranty provider American Home Protect ($46.3 million), title and real estate software and data analytics company Rynoh ($35.8 million), and Omnichannel marketing platform V12 Data ($21.8 million).
Porch’s acquisition streak wound down in 2022 with a $33 million deal to acquire Residential Warranty Services’ home warranty and inspection software and services businesses.
Porch’s business strategy is to leverage the software it provides to home inspectors and mortgage and title companies to help it sell home warranty and insurance products to homeowners, and operate a marketplace for moving services.
Through its subsidiaries, Porch claims “deep relationships” with about 30,000 companies “that are key to the home-buying transaction,” with its software being used to process 40 percent of home inspections and title transactions last year.
“Through our vertical software products we have unique insights into the majority of U.S. properties,” the company said in its most recent annual report. “This data helps feed our insurance underwriting models, better understand risk, and create competitive differentiation in underwriting.”
In the last 12 months, shares in Porch Group have changed hands for as little as 49 cents and as much as $4.78. At Monday’s closing price of $1.48, the company’s market capitalization was about $150 million.
In reporting a $64.5 million second quarter loss, Porch Group said its cumulative deficit since launching stood at $799.7 million as of June 30.
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