Credit Plus Inc. has announced the launch of a new mortgage fraud prevention tool called Undisclosed Debt Monitoring, powered by Equifax. Developed to help lenders meet Fannie Mae’s Loan Quality Initiative (LQI) recommendations and check borrower credit activity during the processing of a mortgage, it offers users continuous monitoring and daily proactive alerts on potential risks.
“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 Credit Plus Inc.
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. Credit Plus customers will now be able to continuously monitor borrower credit activity during the “quiet period” between the time of the original credit file pull and the closing of the loan by utilizing Undisclosed Debt Monitoring powered by Equifax.
Other Undisclosed Debt Monitoring features include: Activity alerts for credit inquiries, tradelines and secondary re-issues; one comprehensive, user-friendly report for all borrower related information; and streamlined integration for ordering results.
Users of Undisclosed Debt Monitoring, powered by Equifax also have access to an exclusive insurance program backed by A-rated carriers and offered through Arthur J. Gallagher Risk Management Services Inc. It protects lenders against buyback or repurchase losses associated with undetected liabilities or borrower misrepresentation resulting from hidden debt.
“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,” said Holmes. “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.”
