Equifax Inc. (NYSE: EFX) created a new Verification of Hazard Insurance service for mortgage and home equity lenders, the Atlanta-based consumer credit reporting agency announced Tuesday.

VOHI is a process that verifies the status of homeowners' insurance on purchases, refinances and home equity loans and lines, which Equifax said can improve the efficiency of the loan origination process.

The service includes contacting insurance companies for verifications, ensuring paid receipts are present, and then returning all information to the lender once it has been verified.

"Verification of insurance lessens the burden of processing costs for mortgage and home equity lenders, while also reducing stress on the borrower or Realtor, as they no longer need to go out of their way to provide excess documentation to show proof of insurance," Michael Kuentz, SVP of Equifax Verification Services, said in a press release.

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