Magellan Development Group Keeps Delinquency Rates Low with High Screening Standards and an Eye for Automated Verifications
Truework shifts the responsibility of verifying documents from the on-site team to a third party (Truework), where all they do is verify applicants. So the team doesn't have to worry about their ability to know things like: what different payroll and bank statement fonts are supposed to be. They can worry about doing their job. They don’t have to spend time and energy on knowing what is or is not real or verifiable.
Problem
Magellan Development Group knew from the beginning that they wanted to prevent fraud for their rental properties, so they enforced high standards for screening which included proof of income and employment among other items. On-site teams were responsible for reviewing these documents and escalating to upper management if they had hesitations about the validity of an applicant’s documents. Delinquency rates were low, but they recognized that it wasn’t a perfect process:
- Tenured employees typically felt more confident with document review, while new employees took time and additional training to be able to recognize signs of fraud
- Escalations to management caused unnecessary back-and-forth review
- Overall, the process relied too heavily on human review, and they recognized that this reliance led to a risk of error
While they were aware of solutions in the market that provided automated fraud detection, Magellan Development Group instead sought a way to remove both the reliance on documents from the screening process and the responsibility of document review from their on-site teams.
Solution
Magellan Development Group selected Truework for its ability to automatically orchestrate all major verification methods with a single platform. With Truework, document collection and review was no longer the primary method to verify applicants. By switching to digital verification methods, their on-site teams reduced time and effort on an extremely manual process. More importantly, digital verifications removed the risk of error.
They also saw that multiple verification methods reduced occurrences of initial rejections or denials. If one method didn’t produce what was required, then another method was automatically initiated. This provided several opportunities to obtain income and employment information and give applicants a higher chance of housing.
Magellan Development Group leverages Truework for the following verification methods in an automated waterfall:
- Instant verifications
- Credentials (borrower-authorized) verifications
- Smart Outreach verifications
- Document scanning and fraudulent detection signals
100%
decrease in escalations to management after 1 month with Truework
1
end-to-end verification process through Yardi
Looking to the Future
Magellan Development Group continues to work with Truework to identify and prevent instances of fraud and to keep delinquency rates low.
Simplify income and employment verifications
Join the thousands of organizations that use Truework to increase applicant conversion with faster income and employment verifications.
About Magellan Development Group
Founded in 1996, Magellan Development Group has grown from a Chicago-focused, family-owned developer to a national real estate development, investment, and management platform. The company specializes in mixed-use hotel, residential, and office developments in first- and second-tier cities across the United States, having completed 35 large-scale projects worth over $8 billion. Their property management portfolio currently consists of 2,500 units across 7 multifamily rental properties. Learn more about Magellan Development Group at MAGELLANDEVELOPMENT.COM
