Truework, a fintech that provides income and employment verification, raises $50M
Income verification platform Real work raised $50 million in Series C funding to develop products that will advance the digitization of the verification process for banks and lenders.
Venture capital company G squared led the funding round, which also included participation from returning investors Sequoia Capital, Active capital and Khosla Ventures. Actual, Human capital and Four Rivers Group participated as new investors.
“With access to over 35 million (and counting) US employee records, Truework enables lenders to convert more borrowers and make faster credit decisions with verified income,” said Ryan Sandler, CEO of Truework. “Series C funding will help us further strengthen both sides of the verification equation and help build a more efficient, secure and stable credit system.”
The housing market has slowed, the need for automated income and employment verification is increasing, Sandler said in a recent blog post.
“For consumer lenders, increasing competition combined with market uncertainty has driven demand for more robust and accurate data sets to build more robust underwriting models.”
Truework was founded in 2017 and is headquartered in San Francisco, California, and works with payroll providers such as Pleasure, Zenefits and BambooHR to verify and approve borrowers with its application programming interface (API).
How mortgage lenders qualify the value of fintech solutions
HousingWire recently spoke with Sue Woodard, Senior Advisor for Total Expert, about the ways lenders can measure the effectiveness of their fintech solutions and what they can do to keep up with the digital mortgage revolution.
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After the consumer consents to a background check, Truework retrieves the borrower’s place of employment and salary details. When a third party wants to verify this information for that individual, it uses Truework, rather than contacting the company directly.
Truework connects consumers with more than 17,000 lenders, including local credit unions to major banks, increasing applicant conversion by up to 14% and reducing per-loan approval costs by 60%, the firm said. Fintech’s mortgage consumers include top 25 lenders, such as Fairway Independent Mortgage, Caliber and loanDepot. Truework expects to process more than 12 million income and employment inquiries in 2022.
Previously, the firm raised about $45 million, including a $30 million round of funding in 2020. The Series B funding, led by venture capital Active capitalwas used to expand the business and add details to the identity information it shares.
