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The technology solutions provider has launched a new digital document verification service to enable loans to continue to be written during social distancing requirements.
NextGen.Net has officially launched its ApplyOnline digital document verification service (DVS), which allows for the digital verification of a mortgage borrower’s identity.
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While the tool was expected to be released by the end of the first quarter 2020 (see the March edition of The Adviser magazine for more), the launch has been brought forward in order to assist lenders and brokers in meeting their obligations in customer identification amid social distancing measures.
The DVS, which is integrated within ApplyOnline, integrates with 22 federal and state-based government databases to validate a borrower’s identity against official documents like passports, Medicare, citizenship certificates and driver’s licences.
It aims to validate the borrower’s identity documents quickly and accurately while foregoing the need to have an original document or copy of that document.
As NextGen.Net chief customer officer Tony Carn notes, the new technology also removes the need for face-to-face interaction in the current climate of strict social distancing measures.
“Everyone in every part of the globe is grappling with the impact of COVID-19, and our industry is no exception,” Mr Carn said.
“Many lenders and brokers are rapidly reassessing and updating their in-person, face-to-face policies and ID check procedures, which have been significantly impacted during this pandemic.
“That’s why we’ve accelerated the release of this new tool, which is critical in today’s environment,” he said.
By using a secure online system managed by the Department of Home Affairs, NextGen.Net added that it was also an “accurate, up-to-date and independent source for identity verification”.
“This means that in real time, ApplyOnline checks and validates all relevant documents on all 22 government databases,” Mr Carn said.
Mr Carn particularly noted that the system provides an array of benefits for all parties and will save brokers time on the verification of identity process.
“The big benefit for brokers is they don’t need to source copies of these documents, and for lenders it means that when they receive the loan, these documents don’t need to be validated in-person because they’ve been validated within ApplyOnline using the DVS,” he said.
“Ultimately for borrowers, they gain a faster time to approval.”
ING to introduce remote ID checks
The news comes as more lenders announce changes to their VOI requirements amid the COVID-19 pandemic.
This week, ING announced that it has introduced provisions for brokers to use video technology to verify the identity of customers.
The non-major bank stated it will now allow for brokers to conduct consumer identification using “video-based technology”, to align with the introduction of stricter social distancing measures.
The new provisions are appropriate when “a face-to-face interview between broker and client is not possible”, according to ING, and the new method “will add” to other traditional methods of identification.
Brokers will be required to follow the following steps, in using video technology to conduct customer identification:
- Broker to request and receive copies of an applicant’s acceptable identification documents
- Broker arranges for a video meeting with applicant(s) to be identified
- Applicant displays the original identification documents on the screen camera
The broker can then validate that the documents in the video are the same documents as the copies provided to the broker, that the likeness of the applicant is identical, and that the documents appear to be valid and accurate.
A new identification form will need to be included with the application.
However, ING has said that it reserves the right to request face-to-face verification of ID where there is any uncertainty as to an applicant’s identification.
[Related: Banks move to adopt remote loan writing and VOI process]
