Halcyon says GSE test delivered 100% transcript fulfillment

Halcyon Solutions says a post-close GSE test on Guaranteed Rate loans delivered 100% transcript fulfillment with no failures, while upfront rejections ran under 1% and were mostly tied to borrower misrepresentation. The company says its TrueTax and TrueCalc tools can cut transcript and income-analysis costs while improving fraud detection and auditability.

Why it matters: - Halcyon Solutions is pitching a fix for a major mortgage workflow problem: post-close income validation failures that can leave loans without verified income and increase repurchase risk. - The company says its approach can turn a process that fails often into one that delivers transcripts reliably, faster and at up to 80% lower cost than traditional transcript services. - Lower rejection rates also change the signal lenders get. A failed transcript pull can point to potential fraud instead of routine IRS processing noise.

What happened: - Halcyon says a GSE post-close test on Guaranteed Rate loans delivered 100% fulfillment of transcript requests, with zero failures. - The company says every transcript request in the test was completed within hours. - Halcyon said investors report roughly 60% of post-close income validations fail across the industry. - Kirk Donaldson, Halcyon’s founder and CEO, said the industry has accepted high failure rates as part of doing business.

The details: - Traditional transcript requests are submitted to the IRS one at a time and require a fresh signature for each request. - Halcyon says that model creates repeated chances for rejection. - One major credit and transcript provider reports rejection rates as high as 30%. - Rejected requests are still billed, and costs can exceed $50 per loan. - Halcyon’s TrueTax™ uses borrower-granted authorization already held on file with the IRS. - Once that authorization is in place, lenders can pull transcripts again before or after closing without a new submission. - Halcyon says TrueTax rejections at origination run under 1%. - The company says nearly all of those rejections are tied to borrower misrepresentation. - Halcyon says that lower rejection rate makes each rejection a stronger fraud signal. - The company says TrueTax can surface synthetic identities and other bad actors earlier in the loan process. - Halcyon says lenders pay only when the IRS authorizes the borrower. - The company says its pricing includes no added fees for corrections, extra tax years, multiple borrowers, or rejections. - Halcyon says TrueTax is available through multiple LOS integrations, direct API access, and reseller channels branded “Powered by Halcyon.” - Halcyon says it serves one of the industry’s largest transcript client bases, both directly and behind other resellers.

Between the lines: - The pitch is not just about automation. Halcyon is trying to reposition transcript access as a lower-friction fraud-screening layer for mortgage originators. - The company is also trying to move income verification upstream, where problems are easier and cheaper to fix. - Halcyon’s messaging suggests that fewer failed pulls can improve both operational efficiency and underwriting quality. - Donaldson said lenders need to know who the person is, where the information came from, whether it was altered, and whether the data driving the decision is true. - That framing points to a broader claim: verified source data matters before artificial intelligence can be useful in lending. - Halcyon says TrueCalc™ builds on transcript access by using AI imaging to extract tax return data and reconcile it against IRS transcripts. - The company says that removes manual “stare-and-compare” work and multi-vendor handoffs that can add error and breach exposure. - Halcyon says the result is fully data-driven income output at a lower cost than traditional calculation services. - The company says eligible loans receive representation-and-warranty relief from both GSEs. - Halcyon says one GSE has extended that relief to the combined data and calculation, which the company believes is unique in the industry. - Halcyon says TrueCalc is web-based and preserves every source document, input and adjustment for underwriting, QC and post-close review.

What’s next: - Halcyon is directing lenders to learn more at the company’s website. - The company is likely to continue pushing TrueTax and TrueCalc through lender integrations, APIs and reseller partnerships. - If the test results hold at scale, Halcyon could strengthen its case that transcript fulfillment and income analysis can be both cheaper and more reliable than current workflows.

The bottom line: - Halcyon is betting lenders will pay for fewer failures, faster transcript pulls and a cleaner fraud signal, not just another transcript service.