Proceed with confidence - gain more visibility into borrower activity
There's a blind spot or "quiet period" that occurs during the mortgage origination process - the time between the original credit file pull and the closing of the loan. Nearly 14 percent of all mortgage borrowers, including those with solid credit scores and debt-to-income (DTI) ratios, apply for at least one new trade line during this period.
Don't get blindsidedA mere 3 percent increase in DTI during the quiet period can derail the origination process and result in costly loan repurchase demands.
Undisclosed Debt Monitoring continuously monitors borrower files during the quiet period, providing daily alerts to lenders, mortgage insurers and investors about activity that may represent potential risk associated with mortgage loans in their pipelines.
Streamline underwriting and quality control efforts with fresh insight into credit activity, allowing you to close low-risk loans more efficiently.
Reduce costs associated with process bottlenecks and closing disruptions.
Improve the borrower experience by proactively addressing and resolving potential issues prior to closing.
Immediately improve new mortgage loan vintages by reducing costs of repurchasing "broken loans" and limiting long-term exposure to delinquent or defaulted loans.
Facilitate compliance with industry standards for loan approval that address verification requirements such as identifying undisclosed liabilities.
The danger zone is the average borrower with a credit score between 620 and 720. Even financially savvy borrowers with credit scores in the upper 700s are very likely to open new trade lines during the underwriting quiet period." - From the white paper "Zooming In on Undisclosed Debt"