As mortgage fraud becomes a more prevalent issue throughout the country, Credit Plus Inc. has automated its fraud detection tools to help mortgage professionals verify loan application data to detect fraud incidences.
The Salisbury, Md.-based provider of credit services has made updates to seven products that are part of its Validation Plus system in order to prevent mortgage fraud from occurring.
“Stopping fraud begins with removing the opportunity for fraud to occur,” said Greg Holmes, national director of sales and marketing for Credit Plus. “Early detection through the use of Credit Plus automated tools eliminates that opportunity, providing a high level of protection for both mortgage professionals and consumers alike.”
Addressing nearly 60% of mortgage fraud that involves identification discrepancies, the company’s identity validation product provides a validation score, specific warning messages, household income estimates and checks of watch lists to find any signs of fraud.
Another product that has been automated was Social Security number verification. This product tracks an applicant’s SSN and name combination to confirm that it does not match any name that is on the social security association’s death master list. This tool is compliant with Fannie Mae LQI requirements.
The mortgage participant report checks applicants against industry watch lists such as the Department of Housing and Urban Development’s Limited Denial of Participation, the Office of Foreign Assets Control Specialty Designated Nationals List, the General Services Administration Excluded Parties List System and appraiser license data.
The MERS SSN lien report has the ability to search more than 60 million lien records that are in the MERS system to determine if a borrower has other mortgages on the same property or has any undisclosed mortgage loans. Clients receive an updated lien report within 10 days of closing.
Automation was also done to the employer ID report that validates employer information including address, phone, year the company was established, number of employees, revenue, company executives and its website. The corporation/sole proprietorship database also verifies the company’s organizational structure.
The final product that was automated to detect possible fraud was the subject property report. This product verifies that the property actually exists, confirms characteristics of the dwelling, substantiates previous ownership and determines whether the property is at risk for flipping.
“Mortgage fraud continues to rise, and Credit Plus is committed to helping mortgage professionals reduce their loan risk,” Holmes said. “Our tools automate most of the validation process, providing immediate confirmation of application information so fraud can literally be stopped before it even gets started.”
