In this conversation, see Shelly and Sasha break down the company’s latest product moves—from intelligent Verification to the groundbreaking FICO Score Simulator. A smarter future for lending. In this episode, hear from Shelly and Sasha of Xactus as they break down the company’s latest product moves—from Intelligent Verification to the groundbreaking FICO Score Mortgage Simulator.
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00:00We are live from Las Vegas.
00:08I'm Diego Sanchez, President of HousingWire,
00:11and I'm joined today by Shelley Leonard and Sasha Stair.
00:14Thank you so much for joining me today.
00:16Absolutely. Glad to be here.
00:17So before we dive in, Shelley,
00:20I'd love to learn a little bit more about you and Zactus.
00:25Sure. So I have been in
00:28the mortgage FinTech space for my entire career,
00:32which is over 30 years.
00:34I'm not that old, but it is a fact.
00:36I actually spent the majority of my career at
00:39Black Knight or one of its predecessor companies.
00:42We had many names in the past.
00:43A little over three years ago,
00:45I left Black Knight to join Zactus.
00:48It wasn't called Zactus at the time.
00:50Zactus is formed from a number of acquisitions.
00:53We acquired about seven different companies
00:55in the credit and verification space over the last seven years,
01:02put them all together,
01:03and in 22, so March of 22,
01:06we rebranded as Zactus.
01:07So that was when Zactus was created.
01:10It really is about innovating in the verification space.
01:15That was the whole reason I joined the company.
01:18It was what got me to leave, again,
01:20a 29-year career with Black Knight by
01:24the opportunity to transform this piece of
01:27the mortgage market into something that can help lenders reduce cost,
01:32can help them better serve their consumers,
01:34and all within a very regulatory and compliant way.
01:37So Sasha, let's talk a little bit more about that opportunity.
01:39I imagine it's what drew you to the company.
01:41You only recently started as CMO.
01:44Yeah, just this last October.
01:45So a couple of things drew me.
01:47I'm not going to lie. Shelley's one of them.
01:49Who you work for and work with matters.
01:51In addition to her, the rest of
01:52the leadership team just felt like a great culture fit.
01:55They all come with an extensive background in the industry,
01:59leaned in, really focused on adding value to customers.
02:03I look for those type of opportunities,
02:05not just in a leadership team,
02:07but also in a company.
02:08I loved what Zactus was doing.
02:10I think the verification space is an area that
02:12needed to be redefined and reframed.
02:14I saw the vision that Shelley and others had
02:17and immediately knew it was the place for me to be.
02:20It's a good segue into intelligent verification,
02:23which you, I think, are probably talking about at this conference.
02:26What is intelligent verification and why did you launch it?
02:30Yeah, absolutely.
02:31So it's been something we've been
02:33evolving towards for some period of time.
02:35We've just now really created the categorization
02:38of what we've been doing and what we've been focused
02:41on through our proprietary technology,
02:43Zactus 360, which we call the Intelligent Verification Platform.
02:47Really what it's about is,
02:49how do we help lenders use data
02:53to reduce overall consumption of that data,
02:56which sounds kind of counterintuitive.
02:57Shelley, you sell data into the mortgage market.
02:59Why would you want to reduce people's consumption?
03:02And the answer is because we want this market to be
03:04as efficient and cost-effective as possible
03:08to ultimately benefit the consumer.
03:10And so how do you do that?
03:11You leverage technology, you leverage data insights
03:14to create intelligent waterfalls
03:17that enable lenders to buy the right data
03:20at the right time when it's needed.
03:23So we're gonna reduce waste in the market through technology.
03:26That's really what we're all about.
03:28So innovating in a space that,
03:30I joke about the fact that the last time I was innovative
03:32when it went from paper to computers,
03:34and then it's largely been left alone.
03:37The costs, obviously, of getting a mortgage
03:39have been increasing over time,
03:41but specifically in the verification space,
03:42the costs have been accelerating very rapidly.
03:45And so we feel responsibility in the market
03:48to help address those costs.
03:51Yeah, you're really addressing a customer pain point.
03:53And we've all seen the LinkedIn posts.
03:55Absolutely.
03:56Costs are really an issue with verification.
03:58Absolutely.
03:59So that's really fascinating.
04:00So we're trying to do it a little different way.
04:01So not just a price play,
04:03but really looking at where are you buying data?
04:05Do you need to buy that data?
04:06What's the best next step in that mortgage process
04:09and what data do you need to complete it?
04:11And a long-term partnership.
04:12Absolutely.
04:13So Sasha, I mean, it sounds like the marketing strategy
04:19is right in front of you and exciting.
04:22What is that marketing strategy
04:23for intelligent verification?
04:25I'm so glad you asked.
04:27Conveniently today, you're seeing just a little snippet of it.
04:29We've got the shirts that say Got IVP.
04:32While we're here at ICE,
04:33we thought it's a good conversation starter.
04:35No one's going to know what an IVP is.
04:37Why not ask, what is an IVP?
04:39Well, happy to tell you,
04:40it's an intelligent verification platform.
04:43And you should have one.
04:44And part of that marketing strategy
04:46is really understanding our customers,
04:48what they need and what's next
04:50so that we can meet them where they're at.
04:52And we think that this is the next part of their tech stack
04:54that they need to be thinking about.
04:56You have a CRM, a point of sale,
04:58an LOS, a servicing platform.
05:00Do you have something that wraps the data
05:02and the insights around it
05:04in a way that can, as Shelly mentioned,
05:06reduce those loan production costs
05:08and really give you impact?
05:10And in order to market that, we have to tell that story
05:12and it has to be in multiple ways.
05:14You know this, there will be multiple channels.
05:16HousingWire will be one of them
05:17that we partner with greatly.
05:18And then multiple tactics.
05:20And different lenders consume that information
05:22in different ways.
05:23Sometimes it's email,
05:24sometimes it's coming to these trade shows.
05:26Sometimes it's through a referral and a one-on-one meeting.
05:29And so being able to have the sound bites,
05:31the fun marketing plays, our purple shoes,
05:33all sorts of things to create the excitement and the buzz,
05:36we're going to do it all.
05:37So on this theme of using data to reduce the use of data.
05:43You've partnered with FICO on a mortgage score simulator.
05:48Tell us a little bit more about that
05:50and how you plan to roll that out.
05:51Sure, absolutely.
05:53We are really excited actually to launch,
05:56to be the first in the industry
05:57to launch FICO's mortgage simulator.
06:00We worked with them,
06:02helping them understand from our standpoint,
06:05we have deep subject matter expertise,
06:07obviously in the rescoring and the score optimization side
06:11of the verifications industry.
06:14Clearly FICO knows their FICO score better than anyone.
06:17So who better to bring something to the market
06:19to really help lenders and consumers
06:22make sure that they understand all the components
06:25of their credit and what they can do
06:27to enhance their credit through simulation.
06:30And so combining the credit data that we serve up to lenders
06:34with their FICO simulator was a great opportunity for us
06:37to deliver something new to the industry
06:40that benefits consumers and ultimately makes
06:44what we're all after,
06:45which is how do we help more consumers become homeowners?
06:50That's our overall mission.
06:51And we think that the FICO score simulator
06:53is the next step in doing that in accurate data,
06:57leveraging all three bureaus
06:59and really making sure that consumers understand
07:01what their options are to get approved for a mortgage
07:03and buy the home that they're looking for.
07:04Yeah, Sasha, let's talk about that consumer angle.
07:07Where exactly does this simulator fit into the flow
07:11of the origination process?
07:13Absolutely.
07:14I think about it from my own standpoint, buying a home.
07:17I was pre-qualified, but what if I weren't?
07:20And what if I would have gone through the process
07:22and been denied?
07:23Or I probably didn't get the best rate possible.
07:26What could I have done differently with my credit data
07:29to make sure that I leveraged the power that I had
07:33to get the best option possible,
07:35both from a loan product and a rate standpoint?
07:38So being able to work with a tool
07:39that helps simulate those scenarios.
07:42If I do this and it affects my credit report this way,
07:45how does that change what's available to me
07:47and what I can purchase and when
07:49and get the best value and the best rate possible?
07:52It can be really deflating
07:53when you're going through the process to be told,
07:55hey, you're gonna get a higher rate
07:57than what we originally thought
07:57because we didn't know what your credit data would show.
08:00So this allows you to have that conversation upfront.
08:03And then it takes away that emotional impact
08:05of finding out, uh-oh, I might not have been as ready
08:08as I thought I was.
08:09It's also, in my mind, the next evolution
08:12of where we're headed in general with consumers.
08:15They expect a digital experience.
08:17They see it in other areas of their life.
08:19And we're starting to see more consumer,
08:22and I would say consumer permission and managed data.
08:25And so if we want to help bring consumers along the journey,
08:29create a more digital experience,
08:30and also give them the power of their own data
08:33and their own hands,
08:34this is the right first step to take towards that.
08:37Yeah, and in this market,
08:38I imagine that you're giving LOs
08:42more opportunities to originate
08:44because maybe they're helping someone qualify
08:46who would not have qualified otherwise.
08:48Absolutely, and you're helping educate the consumers
08:51and help them understand the power of their credit
08:54and the power of their spending
08:55and the power of the decisions that they make every day
08:58to help them achieve their ultimate goals.
09:01And when pipelines are challenged, right?
09:04And so LOs are looking to hold on
09:05to every deal that they have.
09:07And so a simulator like the FICO Mortgage Simulator
09:10is something that can really help them
09:12get the customers across that line.
09:14So Shelly, you mentioned that the company
09:16was built through a series of acquisitions
09:19and then rebranded as Zactus a couple of years ago.
09:23Are you still thinking about acquisitions
09:24or are you thinking about organic growth right now?
09:26Good question.
09:27So, you know, the last three years
09:29we've been really focused on organic growth.
09:33You know, we did purchase a flood company
09:35which was great opportunity for us to have our own data
09:38to be able to provide the flood certifications
09:40that are needed during the origination process.
09:42But since then, we've really been focused on
09:45investing in our core proprietary technology, Zactus 360,
09:49the first intelligent verification platform.
09:52And we're looking for opportunistic acquisitions
09:54not necessarily in the spaces where we are today,
09:57but really thinking about it
09:58from a technology perspective.
09:59So where are we seeing where there's new technologies
10:02that are being added into existing products
10:05that are either changing the way lenders use those products
10:08or enhancing that to again,
10:10drive down costs in the origination process.
10:13So we're thinking opportunistically,
10:14but more along the technology side
10:16from an acquisition standpoint.
10:18And thinking about where else can we use
10:20our existing products and enhance those products,
10:23filling out that white space that we have
10:25in the verification space
10:27and looking maybe outside of originations
10:29and thinking about how can we leverage these products
10:31in other areas of the mortgage life cycle,
10:33servicing capital markets, for example.
10:35Very interesting.
10:36I think that's a good place to leave it.
10:37It's a very intriguing place to leave it.
10:39I wanna thank you both so much
10:41for joining me in this interview today.
10:42It's been great.
10:43Absolutely.
10:44Thank you, Diego.
10:45We appreciate it.
10:46Thank you for having us.