Skip to main content

LenderLive’s GuardianDocs to Offer New Income Validation Solution

NationalMortgageProfessional.com
Oct 19, 2014

LenderLive Network Inc. has announced that its GuardianDocs unit has launched FACTCheck, a product designed to help lenders calculate and validate the income and assets used to determine and prove ability-to-repay (ATR) decisions. FACTCheck uses advanced analytics to review and compare income data residing in a variety of different documents, including IRS 4065 tax transcripts, tax returns, W-2s, 1099s, paystubs and bank statements.

Underwriters must manually review the documents supporting the borrower’s income and assets, and inconsistencies within and across the sources of documentation can often be missed. Depending on the seriousness of the miscalculation or error, loans could lose their qualified mortgage (QM) status and create life-of-loan liability for lenders and investors, experts say.

“The best way to calculate, and then validate income, is to compare all of the sources of this information to make sure that they are ‘telling the same story,’” said Jonathan Kunkle, president of GuardianDocs. “FACTCheck ‘interrogates’ the information presented in various documents, looking for discrepancies or variances that might result in over or under calculations of income. For example, does a borrower’s pay stub reflect the same income as the W-2, or are there garnishments that need to be considered? Or does a bank statement show monthly cash flows, either in or out, that warrant further investigation?”

FACTCheck’s combined income report adds to the cash flow analysis by further validating the income within and across the other source documents from the loan file, the company said. The FACTCheck rules engine systematically addresses all the common income discrepancies, ensuring the household’s gross monthly income is accurate and, because the means to which the income was calculated is captured and stored, is also defensible.

In addition to QM/ATR, other expected use cases include due diligence, loan sale and file reviews, pre- and post-close QC/QA, loss mitigation, and CFPB audit preparation.

Published
Oct 19, 2014
MBA Offers Suggestions For Improving Refis, Forbearance

Responds to CFPB's request for information published in September.

Regulation and Compliance
Nov 30, 2022
2023 Conforming Loan Limit Tops $1M For High-Cost Areas

FHFA said the baseline conforming loan limit will increase 12% next year.

Regulation and Compliance
Nov 29, 2022
FHA Extends Waivers To Its HECM Loss-Mitigation Policies 

Extension applies to senior borrowers affected by COVID-19.

Regulation and Compliance
Nov 28, 2022
N.J. Real Estate Developer, Lawyer Admit To Mortgage Fraud

Plead guilty to defrauding Fannie Mae, insurers of over $3.5 million.

Regulation and Compliance
Nov 28, 2022
Strength In Numbers

Seeking advice from the CFPB

Regulation and Compliance
Nov 21, 2022
HUD OKs Private Flood Insurance Options For Homeowners 

FHA to allow private flood insurance policies on insured single-family mortgages in special flood hazard areas.

Regulation and Compliance
Nov 21, 2022