Verification Service Helps Lenders Comply with New FHA Rules

Kroll Factual Data has released an Independent Verification Solution, which helps lenders comply with the proposed FHA credit policy changes announced on Sept. 18, 2009. Under the proposed guidelines, mortgage brokers will no longer receive independent FHA approval for origination eligibility, but will instead be required to originate through an FHA approved lender. Since FHA approved lenders will carry the liability for broker-originated loans, they need to bolster their verification process to support the additional volume that will come from the correspondent channel, said Loveland, Colo.-based Kroll Factual Data in a prepared statement. Adding to this new strain on scarce underwriting and quality control resources is a new rule for FHA streamlined refinances which requires lender certification of the borrower's capacity to pay at the time of application. Kroll Factual Data will deliver capacity-to-pay verifications. According to Kroll Factual Data, the detailed billing and reporting that is included with the service increases traceability and transparency for Real Estate Settlement Procedures Act compliance. To give lenders an extra measure of protection against the risk of errors, Kroll Factual Data's verifications are backed by representations and warrantees of accuracy. Lenders can customize the solution to include additional types of verifications and risk assessment analytics as required for their specific risk management program.