Step Eight – Fraud Tool
Fraud tools are used to help you quickly find “the hidden side of everything” and can be an underwriter’s best friend. Most companies have a system or tool they subscribe too that takes all of the data submitted on the 1003 and “tears apart” what is stated. These tools will take the application data submitted and complete hundreds of checks in cross checks all in a matter of seconds. Today’s fraud tools have taken what could have been ten to fifteen minutes of research and reduced it down to a few minutes of reviewing data, that to be honest, is much more reliable and accurate than the old way of doing things.
Here are some examples
- Home phone number – who does 411.com say it belongs too
- How long have you been using your social security number
- How many properties do you own according to public record
- Where does your voting ID card say you live
- How far away is that new home from your employer versus your old home
When you read the above examples you might think “what’s the big deal” about any of these questions. On their own they probably are “no big deal” but if enough of this information does not “square up” this should cause you to fall back on your red flags training. After you have underwritten the loan these questions will either confirm your loan is good with no issues or cause you to question if you have all the information you need to make a proper decision.
For example what if you reviewed a 1003 and the borrower stated he had 4 financed properties, but the fraud tool told you about a 5th property owned by the borrower in an LLC. If you would have tried to sell that loan to FHLMC and they would have run a fraud tool and found property number five you just cost your company thousands of dollars due to a repurchase demand. One thing you have to know about working on the mortgage business, it is always the mortgage companies job to complete the most through due diligence available to ensure the quality of the mortgage loan your selling to the investor or agency.
These tools do so much work for you to verify the application data, but if you don’t complete the fraud review as step 8 you won’t have enough knowledge about the loan to understand the data given to you by these great tools, this is one step that will only work here in position 8 trust me on this!!