Cost & Time Delays from False Fraud Alerts

ADV Report –

Application Data Verification

Comprehensive 1003 Application Data Verification

The ADV Report is a single comprehensive report identifying fraud risk factors within the mortgage loan application. Our system parses the loan file and verifies key loan data and returns a single concise report highlighting discrepancies between the loan application data and the public records. The report covers the key verification elements required by secondary market investors including Fannie Mae LQI and is approved by CitiMortgage, Chase, Chase Rural, Stonegate, Trustmark, Guardian, Pacific Union, Nationstar, Republic Bank & Trust, Stearns, Texas Capital Bank, among others.

The fraud detection service accesses literally billions of public records to instantly verify: borrower, property, employer company data, and watch lists, providing comprehensive national coverage. The 1003 data is verified against credit header file data, utility invoice data, single-family residential property data, USPS data, corporate & sole proprietor data, reverse phone and reverse address data and demographic and industry sources.

Saving underwriter time

The ADV report is designed to reduce the underwriter and loan processor time, by improving:

ReadabilityLenders consistently agree that it takes less time for their underwriters to review and resolve issues with ADV versus other fraud reports.  The ADV layout and the “Pass” or “Fail” approach promotes rapid review and quick understanding of the results.
TransparencyBased on input from leading secondary market partners, ADV uses a Pass/Fail approach to replicate that taken by an underwriter.  A discrepancy between loan data and public records is highlighted, and an automatic process then checks for a data input miskey or alternative public data to help resolve the discrepancy.
FocusThe content of the ADV family of reports has been reviewed and approved by multiple investors and does not return unnecessary and redundant information.  Also, the ADV report can be tailored to further focus in on the verification risk test required by the lender.
False Alert ResolutionAlong with testing for miskeyed data and alternate data, the ADV service supports three powerful options to help lenders quickly resolve false red flags:  1)  Cleared by Lender -the lender can add notes and attach supporting documents in the ADV journal and update a “Fail” to “Cleared by Lender.”
Application Data Validation (ADV Report Options)ADV 40ADV120ADV130ADV Reconfirm
Summary Alerts & Risk Score Summary of findings including risk score based on an overall assessment of discrepancies on loan file, with specific alerts to help focus lender on key issues. 
Borrower Identity Verifies Name, SSN, DOB, Address, Phone.  With the probability of identity fraud including both warning message and helpful hints such as possible miss-keyed data.   
Property Ownership Identifies current and historic addresses used by borrower and checks for property ownership records and includes a 7-year foreclosure record search.    
MERS Lien Checks MERS lien registry to help identify undisclosed liens.
Employer ID Third-party validation of employer data including company name, address, phone, website, number of employees and revenue and a reverse phone # lookup. 
Subject Property Checks unit numbers, ownership, refinance & sale history, selling price, recording date and identifies recent neighborhood sales and legal description. 
FHFA Home Price Index Checks neighborhood Home Price Index trends since purchasing with a calculation of current estimated value based on FHFA data.    
FEMA Declared Disaster Checks for FEMA declared disasters in the subject property county.  
Excluded Party & Appraiser License Check individuals and companies against the excluded party lists.   
AVM Returns an estimated valuation on the subject property.     
Estimated Income Based on borrower’s job title, years on the job and location, returns an estimated income for that position.