E-Income Verifications Would Help Servicers

Now servicers will be required to verify that the borrower belongs in the HAMP modification upfront, before putting the borrower into a trial mod. How do they do that? Servicers need all the information about the borrower upfront in order to redecision the loan, which means paperwork can't just roll in after the fact.

One important piece of information required is verification of income. At present the IRS does not accept e-signatures, so verifying income can be a manual process. That's why vendors are looking to integrate so that after the paper request is processed the vendor can ship the lender back only the needed data. For example, RealEC Technologies Inc., a provider of collaborative network solutions to the mortgage industry, has added new income verification services to its RealEC Collaborative Partner Network, the RealEC Exchange.

The income verification suite, provided by Lender Processing Services' Applied Analytics group, enables lenders to validate a borrower's identity and verify the accuracy of income information provided during the application process. The borrower's income is confirmed directly with the Internal Revenue Service by uploading the signed IRS 4506-T form (request for transcript of tax return) electronically through the RealEC interface. LPS Applied Analytics then securely delivers a report from the IRS. The integration into RealEC will continue to advance efficiencies and delivery timelines within the income and identity verification process. "Lenders are facing all sorts of challenges today with increased regulations, growing fraud and changing best practices," said Ted Jadlos, senior managing director of LPS Applied Analytics. "We make it easy to verify identity and income-a necessity before funding a loan. Now, it's even easier to access these solutions via the RealEC platform, the leading collaborative vendor platform to access origination services."

"Income verification services have become critical to lenders' operations to enable effective underwriting, and to ensure that loan quality standards are met," said Dan Sogorka, president of RealEC Technologies. "The addition of the LPS suite of income verification services to the RealEC platform and business model offers our clients the most efficient method of accessing these services available in the marketplace today."