LoanLogics has announced that it has enhanced its LoanHD platform with the a fully automated signature clipping tool, SignaFacts, that provides visual validation of execution and easy comparison of signatures. The types of documents evaluated by this tool include, but are not limited to, the Good Faith Estimate (GFE), Truth-in-Lending disclosure, mortgage note, deed of trust and U.S. Department of Housing & Urban Development (HUD) endorsement.
“Because of this enhancement, the actual signatures can be audited, and when there are dissimilar signatures, it will be readily apparent. Until now, underwriters and auditors did not have a reliable method to quickly and easily inspect signatures side-by-side, which presented quality control issues for mortgage lenders,” said Craig Riddell, SVP and chief business officer for LoanLogics. “This innovation in a pre-close audit helps identify potentially fraudulent signatures before the loan is closed, and in the process, protects borrowers and lenders. Additionally, we have spent considerable time with industry leading Correspondent lenders who are confident that SignaFacts will be a very valuable feature in further reducing the costs of their pre-funding audits.”
It has always been difficult and time consuming to catch differences in signatures across the hundreds of pages contained in loan file documents that often arrive at the lender’s offices at different times. To complicate matters, the number of loan documents in a file has increased dramatically and staffs are stretched as their audit check lists have grown exponentially in the wake of new regulations and heightened investor scrutiny. Not only are individual documents assessed but results compile into defect reports to help identify which employees and documents are most often involved.
“File size and resource issues have made it more challenging than ever to detect signature fraud, while regulatory penalties and reputational damage make it a necessity,” said Riddell. “Lenders can now take steps to protect themselves using an interactive tool to confirm execution and view a side-by-side comparison of signatures. That’s what SignaFacts provides to clients—helping them guard against being the unwitting victim of fraud and quickly identify patterns and root causes of signature anomalies.”
