Undisclosed Debt MonitoringTM

stock-photo-11514215-no-u-turn-road-signNo U-Turn necessary - take action to avoid potential buybacks and see the ROI

One of Equifax's customers, a top 10 direct online mortgage lender with more than $15 billion in residential mortgage loans, had to address new standards in Fannie Mae's Loan Quality Initiative (LQI) - guidelines created to help mortgage companies meet loan verification requirements such as identifying undisclosed debt. The lender needed help continually monitoring and identifying undisclosed debt throughout the underwriting process to:

  • Verify borrowers did not incur new debts or liabilities
  • Review debt-to-payment ratio and ability to fulfill mortgage payment obligation
  • Re-qualify borrowers if necessary due to new credit

How Undisclosed Debt Monitoring helped

Equifax worked with the lender to customize a program that fit within its existing workflow environment, providing:
  • A non-invasive method of monitoring
  • Coverage for consumer debt and inquiries - not just mortgages
  • Flexibility to delay activation until a loan is pre-qualified
  • Cost savings due to early detection of loans unlikely to close because of undisclosed liabilities
  • A safety net to avoid last minute disruptions, rate lock expirations and delayed or cancelled closings

What results did the lender see?

  • Stronger compliance with new standards, including Fannie Mae's LQI
  • Faster, more cost-effective closings
  • Reduced loan buy-backs
  • Streamlined underwriting and quality control processes
  • Improved quality of new mortgage loan vintages
  • Increased investor and insurer confidence in their loans

Don't just take our word for it. Here's what the lender's AVP/Director of Operations had to say:

With Undisclosed Debt Monitoring, we were able to catch a borrower's undisclosed line of credit that might have resulted in a significant buy-back. This one transaction alone easily provided a return on our investment."