Fast-Track Mortgages? Equifax Thinks It’s Found the Answer with Upfront Employment Verification

Equifax recently unveiled a new product it’s calling The Work Number® Report Indicator that could revolutionize the mortgage industry: a combined report that includes both consumer credit information and a notation of whether a consumer’s employment and income are verified in The Work Number database. 

It’s a subtle change on paper. In practice, it could create waves among lenders, brokers, borrowers, competitors, and even regulators.

So how does it work? When a lender pulls a borrower’s credit report through Equifax, they’ll now see a flag indicating whether the person’s income and employment information is already available in The Work Number — a massive database of payroll records that Equifax just so happens to own. 

If the flag is positive, the lender can verify the borrower’s income instantly with a click, without having to go through the usual back-and-forth of requesting W-2s, pay stubs, or employer verifications. 

For lenders, this tool is all about condensing timelines and solidifying risk assessment. When you’re trying to greenlight a mortgage, having the knowledge right away that a borrower has verifiable income removes a lot of doubt. 

Income verification traditionally comes later in the process — and it usually comes with faxed pay stubs, human error, and lag time. This new tool moves that check to the front of the line.

As Equifax states, lenders using this tool will know right away whether the applicant’s employment and income data is in The Work Number. 

That matters because if it’s already there, it saves days off the process and reduces the risk of last-minute denials. For lenders operating in a competitive market with rising costs, that kind of efficiency isn’t just valuable — it’s strategic.

Mortgage brokers also have the benefit of speed but from a slightly different vantage point. Typically, they are the first point of contact for homebuyers, so they must set expectations immediately.

Being able to view employment verification along with a credit report enables brokers to assess the likelihood of a borrower’s success before beginning the full loan application.

That’s a big deal when you’re trying to win over clients who are shopping multiple lenders — or when you’re trying to save time by not working on a file that’s going to fail. 

The catch? These employment checks tend to cost money, in some instances more than $50 a pop. Brokers will have to decide when it’s worth paying and when it’s not. However, being able to get a more complete picture up front is an undeniable upgrade.

For the borrower, this could mean less hassle and faster decisions. If your records are already in The Work Number database — and millions of people’s records are — you might not have to search around for W-2s or recent pay stubs. The lender can just verify your information electronically.

There’s even the potential to get pre-qualified using a soft credit pull, which will not affect your score. That’s a big benefit if you’re shopping around and don’t wish to ding your credit each time.

“We strive to create unique solutions that will move the mortgage market forward by offering greater levels of visibility into a consumer’s financial health, streamlining the mortgage underwriting process and allowing more consumers to benefit from homeownership.” — Joel Rickman, GM and SVP of U.S. Mortgage and Verification Services at Equifax

Of course, some borrowers won’t know their job data is warehoused in The Work Number, and consent and privacy issues are valid. Equifax says the tool is compliant with Fair Credit Reporting Act guidelines, which means borrowers must give permission, but transparency will be key if trust is to hold.

Equifax’s move puts pressure on the other credit bureaus. TransUnion and Experian also possess verification tools, but none are so deeply integrated at the point of credit reporting. If this becomes a standard expectation of lenders, the others may need to get on board or get left behind.

At the same time, this may be an opportunity for fintech startups. Some firms like Truv offer verification solutions at a fraction of the cost, and they’re gaining traction. 

If lenders start to protest Equifax’s pricing or worry about being too beholden to a single vendor, they may begin to get serious about these alternatives. So, while Equifax just cemented its leadership, it may also have re-lit a race.

Whenever you’re dealing with sensitive data — especially employment and income information — regulators are going to take notice. Equifax says this new product is compliant with all FCRA requirements, such as consumer consent and dispute rights. That will be put to the test if consumers believe they’ve been ambushed or dealt with improperly.

And then there’s the broader question of market dominance. Equifax already handles most employment verifications for the mortgage industry, and this new product could further entrench that position. Critics have feared high verification fees and a dearth of choices. 

If the combined solution starts to look more like a gatekeeper than a convenience, expect antitrust talk to resurface.