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Interthinx's FraudGUARD supports compliance with new Fannie Mae guidelines
May 12, 2010

After careful study of Fannie Mae’s new Loan Quality Initiative (LQI) outlined in Lender Letter LL 2010-03, Interthinx has concluded that its loan-level fraud risk tool, FraudGUARD, can assist lenders in complying with Fannie Mae’s expanded guidelines. Interthinx is a provider of proven risk mitigation, mortgage fraud prevention, and regulatory compliance tools for the mortgage industry. In its letter to lenders, Fannie Mae noted the increase in loan repurchase requests to lenders over the past three years. The GSE (government-sponsored enterprise) decided to enhance underwriting and eligibility guidelines through its Loan Quality Initiative (LQI) to help ensure compliance with loan delivery requirements. The additional rules will require lenders to meet stringent new guidelines. FraudGUARD can automate much of the process. “The LQI requires lenders to validate borrower identity, Social Security numbers, undisclosed liabilities, and inclusion on the GSA [U.S. General Services Administration] or HUD [Department of Housing and Urban Development] excluded-party lists,” said Gayle Shank, vice president of product development for Interthinx. “More than 50 alerts within FraudGUARD can help lenders comply with those requirements and reduce the potential for a repurchase request. For example, in the area of undisclosed liabilities, FraudGUARD has made it easier for lenders to quickly scan the industry for additional loans secured—or in the process of being secured—by the same borrower or property. Without an automated tool like FraudGUARD, it is nearly impossible to detect undisclosed properties or a borrower’s intent to mislead a lender regarding occupancy.” “Fannie Mae’s game-changing move establishes a new set of rules to identify and implement policy, process, and technology enhancements to mitigate repurchase risk,” said Kevin Coop, president of Interthinx. “FraudGUARD will help lenders focus on critical prefunding loan data validation now required by Fannie Mae. It will also help lenders originate higher-quality loans as we work together to maintain market stability and reduce risk in both the primary and secondary markets. This is a positive step for the entire industry, and Interthinx is ready to provide support to lenders as they prepare for the June 1, 2010, compliance deadline.” For more information, visit
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