Gold Star Mortgage replaces costly verification methods with broader direct-source coverage

Expanded payroll and bank connectivity translates into lower costs, greater efficiency and a more consistent borrower experience

About

Gold Star Mortgage Financial Group is a retail independent mortgage bank headquartered in Ann Arbor, Michigan, with more than 50 branches and divisions across the country. Since its founding in 2000, the company has grown into a nationally recognized lender with an annual lending volume of approximately $3 billion. Driven by a mission to make homeownership more accessible, Gold Star brings local expertise and a personal touch to every borrower's journey. 

Challenge

When Jared Peterson joined Gold Star Mortgage as division vice president in June 2024, he brought firsthand experience with another provider offering automated verification of income (VOI) and verification of employment (VOE). While that platform had been adopted to reduce reliance on costly verification databases, its limited employer network and rigid borrower communications resulted in poor conversion rates and little operational benefit.

"We rarely had a conversion with the previous platform," Peterson says. "The employer network was too limited, and the platform was clunky. It wasn't user-friendly. And we didn't have flexibility to get branded materials going out to clients, so everybody thought they were getting spam mail."

At the time Peterson joined Gold Star, the company had not yet adopted a consistent verification strategy. Outside of database-driven verification services, the company relied heavily on manual verification processes. 

Processors spent hours calling employers and chasing follow-ups on every file. For borrowers with multiple recent employers or those working for smaller businesses in Gold Star's many rural markets, where automated verification options were often unavailable, the burden multiplied quickly.

Gold Star needed a solution that could deliver broad employer coverage, support automated VOI and VOE and provide a better borrower experience while reducing the operational burden on processors. The priority was finding a platform that could finally make good on the promise of accelerating the path to close.

Solution

After evaluating the market, Argyle emerged as the clear choice. Unlike the platform Peterson had used previously, Argyle's consumer-permissioned payroll connections span 90% of the U.S. workforce through integrations with payroll providers and direct connections to employers and gig work platforms. Combined with verification costs that can be up to 80% lower than legacy database solutions, that coverage made Argyle a compelling alternative to traditional verification methods.

While piloting Argyle's VOI and VOE solutions, Gold Star discovered it could extend the same borrower-connected experience to assets through Argyle's automated verification of assets (VOA) solution. Following a successful testing period, Gold Star rolled out all three solutions across the organization.

Argyle's implementation team provided hands-on support throughout the rollout, adapting its level of engagement to Gold Star's needs at each stage of the process. The team also took an active role in onboarding loan officers and operations staff, delivering training and education that helped drive adoption across the organization.

"The integration went really well, and anytime we've needed anything, the Argyle team is quick to respond and get support involved," Peterson says.

Argyle is integrated into Gold Star's point-of-sale workflow through LoanLaunch, the lender's proprietary point-of-sale mobile app, which layers on top of ICE Mortgage Technology's Encompass® loan origination system. If a borrower does not complete all requested verifications during the application process, Gold Star processors can initiate Argyle’s verification services during underwriting, extending the benefits of automated verification throughout the loan lifecycle.

Outcome

Lower verification costs

By increasing the share of loans supported by borrower-connected verification, Gold Star has reduced its reliance on both costly verification databases and labor-intensive manual processes. 

"As we've gotten more adoption, we've been able to move away from some of the more expensive verification methods we relied on in the past," Peterson says. “The cost of Argyle’s platform versus going to independent third-party verification systems keeps our production costs down significantly—and this is why we are constantly pushing for higher engagement with our staff and clients.”

Time savings that increase operational capacity

Argyle compresses what had been an hours-long, multi-step verification workflow that often had to be repeated prior to closing into a borrower-permissioned connection to direct-source data that takes only moments to complete and can be refreshed as needed. By eliminating much of the manual work associated with verification, Gold Star has freed up processor capacity and enabled teams to support more loans without adding headcount.

“When our processors have to call and do a manual VOE, it's a constant process, and then they have to do it again prior to closing. With Argyle, you essentially hit refresh, and there's your verification before funding,” Peterson says. "It's all about maximizing time. Our focus has always been on finding technology that lets us grow volume with the team we've already got in place, and that's exactly what Argyle has allowed us to do.”

44% conversion and growing across VOI, VOE and VOA

Argyle's broad employer coverage has enabled Gold Star to offer automated verification to a wider share of its borrower population, including applicants who might otherwise require manual verification. Reporting from Argyle shows how that broader coverage has translated into higher conversion rates. Over the first 12 months following implementation, Gold Star achieved an average verification completion rate of 44% across VOI, VOE and VOA, a figure that is expected to grow as internal adoption expands.

"The Argyle employer footprint is a lot greater than other solutions in the market, and it really has proved to be true," Peterson says. "Because of that, we've consistently hit above average on the connection rates and the conversion."

Improved borrower engagement

With full control over borrower-facing messaging, Gold Star has been able to brand outreach in a way that builds trust rather than confusion. The customizations have reduced uncertainty around verification requests and created a more consistent borrower experience. 

"The ability to tailor the experience to our brand has helped remove a lot of the confusion that can come with verification requests," Peterson says. "When borrowers see messaging that clearly comes from Gold Star, they're much more likely to understand what we're asking them to do and why we're asking them to do it.”

Buyback protection and secondary market confidence

While Gold Star already experiences a low rate of loan buybacks, the team views GSE validation of payroll-connected data as an important layer of protection. By delivering income and employment information directly from the source, Argyle helps Gold Star increase confidence in loan quality and, when eligible, benefit from representation and warranty relief provided through agency validation programs.

"It's a good insurance policy," Peterson says. "Knowing that qualifying loans may be eligible for representation and warranty relief gives us additional peace of mind."

Today, Argyle plays a central role in Gold Star's verification strategy. With adoption continuing to grow, the company expects to realize even greater value from its investment.