Equifax Mortgage Information Services has introduced a risk management tool targeted to mortgage bankers.
Called Verifier Select, the Equifax service validates business and personal information provided to the wholesaler by the broker on an application.
Other Verification Services
A Verifier Select report can be requested simply by faxing the broker application to Atlanta-based Equifax. Depending on what information the user asks for, the turnaround time for a report is five to 10 days.
In addition to providing traditional credit checks, Verifier Select offers a range of other verification services, including criminal record searches and lender reference checks. "Undertaking a complete and extensive background check can be a time-consuming and expensive process. By outsourcing this function, lenders can focus their management resources on more critical business issues," said V.M. Perry Jr., a senior vice president at Equifax.
Mr. Perry said the Verifier Select service is especially useful for mortgage wholesalers expanding into new territories.
Meeting Guidelines
Verifier Select also helps lenders comply with the Federal Home Loan Mortgage Corp.'s recently issued third-party origination guidelines that call for systematic reviews of brokers' licenses, public records, and references.
Since risk management standards and broker business relationships vary by mortgage company, the customer selects the information components to be verified through the service.
In addition to providing standard credit reports and review of civil records, Verifier Select will confirm state and local business and brokerage.licenses.
Customized Checks
Users can ask for a criminal public record search or a review of the Mortgage Asset Research Institute's Financial Institutions Sanctions and Legal Actions Clearinghouse data base.
Association membership and certification checks are offered as are credit, lending, and investor reference checks. Equifax will also provide customized evaluations and verifications. According to an Equifax spokesperson, these customized checks may involve interviewing former business partners, employers, and personal references.
