SharperLending LLC announced the availability of a new mortgage fraud identification and prevention tool for lenders. The new Undisclosed Debt Monitoring service – powered by a data integration with Equifax is the latest addition to a line of existing LQI compliance products offered by SharperLending.
As a part of the SharperLending compliance product suite, this new undisclosed debt monitoring tool will help to facilitate lender compliance with the GSE Loan Quality Initiative (LQI) guidelines that were implemented in 2010. The service provides lenders with continuous monitoring and daily reporting information regarding a borrower's credit activity from the time the first credit report is pulled at origination to when the loan closes. This daily reporting of activity greatly increases the potential to identify and prevent instances of mortgage fraud. It also helps protect lenders by notifying them about any changes to the borrower's ability to repay the loan. This ensures that lenders only close loans when the mortgagee fits the loan program underwriting requirements - and enables them to make loan program changes as needed.
SharperLending's current tools include a soft-inquiry credit report pull right before closing and an automatic comparison between the report pulled at origination and the report pulled just before closing. The ability for SharperLending to provide all undisclosed debt liability activity alongside the existing credit report keeps all relevant credit files together in a secure, easy-to-locate virtual credit folder.
“SharperLending is excited to partner with Equifax to combine undisclosed debt monitoring with our existing LQI compliance tools,” says Dave Black, President and CEO of SharperLending LLC. “The daily monitoring of changes to a borrower's credit report provides lenders with the information they need when a borrower takes out new lines of credit once they have been approved for a loan. It also complements lenders' workflow by enabling them to take appropriate action well before closing - to modify the approved loan package or, if the activity is suggestive of fraud, to stop the loan from closing altogether.”
SharperLending is one of a select few credit reporting technology providers authorized by the nationwide credit reporting agency, Equifax, to offer this service to its reseller base.
“Equifax is pleased to expand its proprietary Undisclosed Debt Monitoring offering to SharperLending clients,” says Craig Crabtree, Senior Vice President of Mortgage Services at Equifax. “This integration provides an ‘always on’ technological solution, as well as the transparency needed to enhance risk mitigation during the ‘quiet period’ and assist with their LQI compliance requirements.”