Solution Created to Help Lenders Comply with Uniform Appraisal Dataset Standards
BuildFax and DataVerify have come together to create an automated solution that confirms if a proper appraisal was conducted for newly constructed properties.
The two companies decided to help lenders find a solution that helps them comply with Fannie Mae and Freddie Mac’s new uniform appraisal dataset standards that went into effect on Sept. 1. This rule forces appraisers to create their valuation reports for properties that are collateral for mortgages intended for sale to either GSEs have to be generated through a designated electronic XML file format.
With BuildFax’s database, building permit information is tracked for over 4,000 cities throughout the country and allows lenders to assess appraisal quality, potential illegal flips and overall collateral risk. Before BuildFax, lenders did not have any way to determine whether a structure’s claimed improvements were properly assessed, overestimated or fraudulent.
“Fueled by continued economic uncertainty and unemployment, mortgage fraud is on the rise and remains something which lenders must continually guard against,” said Kent Johnson, vice president of DataVerify, based in Chesterfield, Mo. “Innovative resources are a strong complement to DataVerify’s strategy of delivering products that provide lenders with the critical insight they need to lend safely.”
BuildFax’s data on permit information and the proper appraisal for homes nationwide is now included in DataVerify’s Drive system, which tracks whether a property may have any fraudulent information. The addition of BuildFax’s data on the Drive platform allows lenders to monitor, review, process and approve mortgage applications in a faster, efficient manner because they now know the real property improvement history value for a home.
According to DataVerify, 387 lenders have adopted BuildFax’s tool over the last three months through DataVerify’s risk-mitigation Drive platform.
“The Drive system is the perfect application for BuildFax’s game-changing property intelligence,” said Holly Tachovsky, president of BuildFax, Austin, Texas. “While regulations and economic malaise are making lender tougher, BuildFax is providing solutions to make lending decisions easier and smarter. And with HUD and FHA having extended the deadlines for UAD compliance until January 2012, even more lenders now have time to integrate BuildFax data into their processes.”