Fraud Alert, Detection and Compliance Services
Don’t get caught off guard!
FBI statistics and mortgage industry fraud experts estimate that 10-15% of all loan applications contain gross misrepresentations. The actual intent to commit fraud by borrowers and industry insiders is on the rise. From 2003 – 2004, the number of mortgage fraud complaints more than doubled and the FBI believes that the bulk of mortgage fraud scams go unreported.
Manually identifying applications that contain fraud while attempting to provide legitimate borrowers and brokers with a high level of service can be an arduous task. However, the alternative can result in undue exposure and financial loss. According to industry sources, financial losses to business each year totals $35 billion, and each instance of fraud increases the chance that costs associated with the lending process will rise.
INFORMATIVE RESEARCH is committed to the fight against fraud. Our web credit system is TruSecure certified, providing assurance that INFORMATIVE RESEARCH employs renowned security processes and technologies in order to maintain a pro-active and comprehensive information security program. In addition to the implementation of stringent security measures, we provide a host of fraud alert & detection services that allow mortgage originators to identify possible fraudulent activity, without unnecessarily inconveniencing the borrower or the process.
Our Fraud offerings help identify fraudulent or invalid loan applications to protect you from taking on undue risk. Feel secure in the knowledge that INFORMATIVE RESEARCH will allow you to recognize fraudulent applicants more quickly, and permit you to move through the loan process with increased
confidence. Selected key features of our Fraud Alert and Detection Services include:
- The ability to crosscheck items such as Social Security Numbers (SSNs), current addresses, and telephone numbers from the loan application against separate fraud databases. When one or more of these elements is identified as a potential risk, the credit file is immediately flagged according to the cause of possible concern.
- Automated name checking against the National Fraud Database to identify falsified or misleading applications.
- Electronic credit score verification of hard copy credit reports using INFORMATIVE RESEARCH Score Validator™
Credit Score Validator™
The Credit Score Validator™ was designed to assist mortgage lenders and underwriters while at the same time, providing a level of credibility to INFORMATIVE RESEARCH customers. With the increase of non-traditional loan types that allow for no documentation and stated incomes, there is a potential for more fraudulent activity. Lenders that accept loan packages with paper, faxed, or PDF copies of INFORMATIVE RESEARCH credit reports can now verify those reports via our online Score Validator.
The recipient of an INFORMATIVE RESEARCH credit report simply enters the primary borrower’s name, the report number, and the last four digits of the SSN, and the Score Validator will return the actual credit scores reported by the repositories as well as note whether or not a fraud product had been ordered.
This tool allows the recipient of the INFORMATIVE RESEARCH credit report to quickly validate the authenticity of the credit report before undergoing the time and expense of underwriting the file or ordering a back-up credit report.
In accordance with the USA PATRIOT Act, INFORMATIVE RESEARCH has partnered with Experian to provide an OFAC screening service. INFORMATIVE RESEARCH’s OFAC Alert Service can be added to our credit reports, smoothing your path to compliance with federal lender requirements.
The OFAC Alert protects your business from the time and cost of manually checking borrower records against the U.S. Treasury’s master list of Specially Designated Nationals and Blocked Persons which contains thousands of individual names. Once you request the service, each credit report checks against that database, and returns either a match or a message indicating “Submission of OFAC Request Returned No Results.”
Use INFORMATIVE RESEARCH’s OFAC Alert Service as a valuable component to streamline your Federal compliance efforts.
Our sales staff is available to discuss the benefits of activating INFORMATIVE RESEARCH’s Fraud Alert & Detection Services. Contact us today to find out more about our extended capabilities.
For more information on the OFAC requirements created by the U.S. Treasury Department, visit the Office of Foreign Assets Control.