One of the most costly expenses associated with mortgage loan origination is borrower misrepresentation. The CFPB’s Ability to Repay Rule requires mortgage lenders to evaluate a borrower’s debt-to-income (DTI) ratio. In addition, Fannie Mae’s Seller Guide requires lenders to identify material undisclosed debt throughout the origination process. This means that mortgage lenders need digital tools to help protect themselves from these significant risks.
Undisclosed Debt Monitoring™ (UDM) from Equifax continuously monitors the “quiet period” between the time of the original credit file pull and loan closing.
Key benefits include:
Reduce fraud and repurchase risk
Streamline underwriting processes
Minimize loan fallout
Improve confidence of investors, GSEs and regulators
Learn more about how UDM is the most streamlined and efficient debt monitoring system available.