The three goals in selecting a fraud
report should now include compliance,
the need to minimize false alerts without missing real alerts, and access to
integrated labor-saving tools to quickly
research and resolve false alerts.
One such report, the ADV-120 application data verification report, includes unique features to help reduce
time and costs:
1. Pass & Fail Flags: The ADV report
returns a consistent summary of key loan
tests, and shows both the positive or
negative results for each. This reduces
labor costs by simplifying user training
and report review and reduces the risk
of missing a key result.
2. Miskey & Alternate Flags: The ADV
report automatically alerts for common
typos such as the transposition of dig-
its in SSN, DOB, Phone, Unit etc. The
report provides the corrected value to
prevent time wasted on a needless false
alert. And it automatically handles un-
listed/ unpublished cell phone numbers
through a unique database and by cas-
Today mortgage lenders ensure
compliance when checking for misrepre-
sentations (misstatements or omissions
by all parties to the loan transaction)
with respect to the borrower or property
by using a broad based “fraud report”
to complement other verifications.
The fraud reports vary in presentation
from provider to provider but all enable
compliance with secondary market Seller
Guidelines to investigate loan information
for potential misrepresentations and to
head off the latest fraud “trends”.
The latest generation of fraud reports now also tackle the hidden labor
costs (processor, underwriter, loan officer, compliance, secondary) associated
with automated fraud risk detection
which otherwise can add hundreds of
dollars to origination costs. Automated
reports rely on comparing 1003 loan
data to billions of diverse data records
to identify misrepresentations. No matter how strong and complex the automated analysis, a need for caution will
result in some false alerts.
cading to alternate phone numbers as
per investor rules.
3. Access to Fraud Specialists: Integrated messaging and access to fraud
specialists eliminates lender time to research each alert.
4. Integrated Research Tools: The
ADV report interface includes dozens
of search options to research each alert
and quickly resolve or confirm it without going back to the borrower for additional documentation. It can confirm
lien status, property history, previous
landlords, property tax status, valuations
(when needed), and much more.
5. Tailored Report: The report can
be instantly configured or augmented
for each lender to address new fraud
schemes, including reverse occupancy
tests, borrower pre-approval prior to
identifying subject property, and control
of which tests and valuations are performed.
6. Settlement Agent & Bank Account
Verifications: In addition the due diligence on both the settlement agent
and their bank account can be accessed
to ensure compliance with warehouse
lender and CFPB requirements. All participants (companies and people) are
also instantly tested against multiple
federal and investor specific exclusion
7. Lien & Judgment Search: The borrower lien and judgment search (to compensate for recent credit report changes) can be performed, as required, to
comply with FHA, VA, USDA and investor overlays.
The ADV-120 fraud risk report is investor approved and tightly integrated
into popular loan origination systems.
ADV-120 is available from most credit
For more information click here:
Director Channel Management
THOUGHT THOUGHT LEADER
Hidden Costs in Loan Fraud Investigation