With the rising number of mortgage defaults and declining home prices, mortgage fraud has become one of the most costly expenses associated with mortgage loan origination. More specifically, recent research findings indicate that 'fraud for property'—where a borrower misrepresents income, employment, occupancy, assets and/or debts in order to apply for a mortgage loan—is a large contributor to the overall rise of mortgage fraud. This is why industry guidelines, such as Fannie Mae's Loan Quality Initiative (LQI), continue to be reinforced to address new seller requirements related to undisclosed debt. Regardless of whether borrowers intentionally or unintentionally omit debt and credit information, the risk is passed along to you.
At Equifax, we understand that lenders need more transparency into the credit activity of borrowers during the underwriting process in order to better mitigate risk and fraud. In addition to Undisclosed Debt Monitoring™, we provide reports that allow you to customize a compliance program based on your individual credit policy and guideline procedures (also known as snap shot reports or gap reports). Whether you originate 10 or 100,000 loans a month, Equifax can tailor a program that will fit within your existing production workflow.
- Undisclosed Debt Pre-Close Report - Identify new inquiries and potential credit liabilities at any time during the mortgage origination process with a clear, concise consumer tri-merge credit report
- Undisclosed Debt Compare Report - Instantly compare the original tri-merge credit report with a more recent report (including an easy-to-read comparative summary) to detect new undisclosed liabilities, credit inquires, derogatory changes, and balance/payment changes