Nexsys Technologies, a FinTech company and subsidiary of Detroit’s Rocket Cos., has released a platform to mortgage lenders nationwide that digitizes and automates the communication between mortgage lenders and homeowners insurance (HOI) companies.
Nexsys and Rocket Mortgage have spent more than a year refining the solution, called Clear HOI, and adding insurance providers to the platform. The tool is now available for any lender.
While much of the mortgage experience has shifted online, the verification of homeowners insurance has remained an inefficient step in the transaction. It requires both parties to manually confirm that insurance is in place for every home purchase and refinance, something that takes days to complete. Clear HOI eliminates the process and replaces it with a digital solution to verify insurance in a matter of minutes.
“After more than a year of perfecting and growing the platform, we are proud to offer Clear HOI to every lender in America,” says Mike Lyon, executive vice president of Nexsys. “At Nexsys, we believe that automation is the best way to modernize the mortgage experience. Whether you are a small lender or are closing several hundred billion dollars a year in loans, Clear HOI can make the verification of insurance faster and significantly reduce opportunities for human error.”
Companies already using the platform include Allstate, Liberty Mutual, Farmers Insurance, and Lemonade. Rocket Mortgage participated in a pilot program, using Clear HOI before it was available to other lenders. The company found the tool increased efficiency and shortened underwriting time.
“Rocket Mortgage’s goal is to simplify the mortgage experience,” says Heather Lovier, executive vice president of client experience operations at Rocket Mortgage. “With our digital technology, our clients can apply for a loan and lock in a rate without ever having to speak to a person. We are now focused on streamlining the underwriting, and that’s where Clear HOI comes in. The next step in improving the process is doing more with the data we have and making it easier to get the data we need. Clear HOI has made what used to be a time intensive step an instant one. It’s a critical new tool that helps us provide the best experience to our clients.”
Clear HOI establishes consistent communication between lenders and insurers because policy information is delivered in the same format every time. The tool also delivers a secure platform with multiple authentication mechanisms to ensure that client data is protected. It uses cloud-based technology and an encryption process. Client data is never saved, so the platform doesn’t open lenders or insurers up to privacy concerns.
Using an application programming interface, Clear HOI can be integrated into the lender’s loan origination system, or the lender can use the Clear HOI online portal.
Nexsys also offers Clear Sign, an electronic closing platform that improves the speed and efficiency of mortgage closings.