Credit Information Provider Utilizes Equifax’s Fraud Prevention Tool

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Credit Plus is now offering its clients the mortgage fraud prevention tool Undisclosed Debt Monitoring powered by Equifax.

Equifax developed this product to help lenders meet Fannie Mae’s Loan Quality Initiative recommendations and check borrower credit activity during the processing of a mortgage.

The product offers users continuous monitoring and daily proactive alerts on potential risks, even during the “quiet period” between the time when the original credit file is pulled and the closing of the loan.

Other features Undisclosed Debt Monitoring provides customers include activity alerts for credit inquiries, tradelines and secondary re-issues, streamlined integration for ordering result and a user-friendly report for all borrower related information.

“We are always looking for ways to enhance our credit tools and are excited to be one of the only companies in the industry authorized to provide this service,” said Greg Holmes, national director of sales and marketing for Salisbury, Md.-based Credit Plus.

Users of Undisclosed Debt Monitoring also have access to an insurance program offered through Arthur J. Gallagher Risk Management Services that protects lenders against buyback or repurchase losses associated with undetected liabilities or borrower misrepresentation resulting from hidden debt.

According to Holmes, one of the major benefits of this mortgage fraud prevention tool is “pipeline protection.” Loan officers are notified when mortgage inquiries occur on their borrowers’ accounts alerting them to rate shopping, undisclosed mortgage loans and possible fraud. This feature enables lenders to proactively work with borrowers throughout the mortgage process and reduce loan fallout.

“Transparency is imperative to the loan process and many lenders simply do not have the tools in place to effectively monitor borrower activity once the original credit file pull occurs,” Holmes said. “Our customers who utilize this service will now be better prepared to communicate with borrowers regarding specific activities detected during the mortgage process, increase their operational efficiency, and significantly reduce the costs associated with repurchasing loans.”