Argyle’s data completeness helps AmeriSave maximize buyback protection
Licensed in 49 states and the District of Columbia, AmeriSave Mortgage Corporation (AmeriSave) has helped borrowers realize their homeownership dreams for more than 22 years. With 250 loan originators and annual loan production of about $130 billion [source], AmeriSave is a top direct mortgage lender that strives to deliver a modern customer experience using innovative technology solutions and financial expertise to pass cost savings down to its borrowers.
Challenge
When sharp increases to its income and employment verification costs threatened AmeriSave’s ability to offer competitive pricing, it sought a solution that could improve profitability without diminishing operational efficiency, loan quality or the borrower experience. Integrating seamlessly with AmeriSave’s proprietary point-of-sale (POS) and automated underwriting system (AUS), AUSSIE, was a key requirement.
“The Work Number is a good service provider and partner, but its current pricing has made it unsustainable to send every loan we originate through TWN,” said Chief Information and Strategy Officer Magesh Sarma. “Verification costs aren’t recouped unless the loan funds, so it’s especially important to manage that expense in a market like this, where pull-through is a concern.”
Solution
Unlike legacy verification databases that buy consumer data and resell it to lenders in the form of VOIE reports, Argyle uses consumer-permissioned data connections with payroll and employer platforms to deliver accurate and up-to-date VOIE reporting, complete with pay stubs and W-2s, at significantly lower cost.
In October 2023, Argyle became the first consumer-permissioned VOIE provider to be named an authorized report supplier for Fannie Mae’s Desktop Underwriter® (DU®) validation service, a component of Day 1 Certainty®, and a few months later it became a service provider for Freddie Mac’s Loan Product Advisor® (LPASM) asset and income modeler (AIM). These integrations help lenders reduce mortgage repurchase risk by enabling access to relief from the GSEs’ representations and warranties requirements.
“Argyle was already making huge strides in the industry when it became the first VOIE provider in its class to secure Day 1 Certainty authorization from Fannie Mae,” said Sarma. “That’s what really ignited our interest: knowing we could consider a lower-cost option without sacrificing the repurchase risk reduction benefits of our legacy providers.”
Covering over 220 million U.S. consumers, including 96% of the Fortune 1000, Argyle delivers an intuitive, frictionless borrower verification experience and industry-leading conversion rates. Argyle offers seamless, out-of-the-box integrations with many of the industry’s leading loan origination (LOS) and point-of-sale platforms, and its open API framework facilitates efficient integration with proprietary systems like AmeriSave’s AUSSIE.
Outcome
“It was clear from our first conversation that Argyle works hard to deliver the highest data quality and conversion rates possible at a fraction of the cost of other solutions,” said Sarma. “We decided to give it a try, and we’ve been extremely pleased by the results.”
Since integrating Argyle’s solution, AmeriSave has realized significant benefits that have enhanced both operational efficiency and borrower outcomes, including:
80% cost savings over legacy VOIE solutions
With Argyle, AmeriSave has seen an 80% reduction in verification costs compared to The Work Number. In fact, thanks to Argyle’s lower up-front costs, the savings have been so substantial that AmeriSave is passing part of the cost savings on to its customers.
“Everyone’s heard by now that the cost of origination is only going up, and in the current market pull-through is an important concern,” said Sarma. “Argyle’s competitive pricing has empowered us to continue passing our cost savings to our borrowers.”
Conversion rates of more than 50%
At least half of borrowers invited to verify income and employment with Argyle successfully connect their payroll provider and get AmeriSave the data and documents required for underwriting — usually in a matter of seconds. This conversion rate substantially outperforms other solutions, which helps AmeriSave reduce manual interventions and loan cycle times.
“Better conversion leads to better customer experiences,” said Sarma. “We’ve seen that Argyle successfully delivers VOIE reports for borrowers from all walks of life, including self-employed, gig and federal workers.”
Buyback protection on more loans than any other VOIE solution
Argyle is not the only VOIE provider that is an authorized verification report supplier for Fannie Mae’s DU validation service and Freddie Mac’s LPA AIM. However, thanks to Argyle’s data completeness, Sarma has documented that AmeriSave receives GSE representation and warranty relief on one in five loans when using Argyle, which is more than any other VOIE provider.
“Argyle delivers every data field required by the GSEs more than 95% of the time, and because of that, they really shine in getting rep and warrant relief for the lender,” said Sarma. “About one-fifth of loan files that contain an Argyle VOIE report are deemed eligible for rep and warrant relief which is much higher than we’ve seen from other verification providers.”
Live with custom integration in just 3 weeks
AmeriSave and Argyle worked together to build a custom integration with AUSSIE in just three weeks. The integration allows AmeriSave to run an automated pre-check against Argyle’s payroll connections network before ordering the VOIE report. If there is a low chance of success, AmeriSave can move on to the next provider in its VOIE waterfall without requiring additional action from the customer.
“The partnership with the Argyle team is excellent,” said EVP of Technology Nixon Edward. “I would rate it as one of the top integration experiences we have had. Argyle is very attentive and involved to ensure our success and drive us over the finish line more quickly than we ever dreamed.”
“This is a team that truly understands lenders,” concludes Sarma. “It’s not just about the cost-effectiveness and excellent product—it’s about the people behind it. The Argyle team is a pleasure to work with, always keeping our best interests at the heart of the solution.”
Thanks to Argyle’s unwavering support and innovative approach, AmeriSave has found a highly reliable partner in balancing cost, efficiency, and an exceptional borrower experience.
