DataVerify DRIVE Technology Available to Help Lenders Comply with New Fannie Mae (LQI) Requirements

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Apr 26, 2010, 08:00 ET

ST. LOUIS, April 26 /PRNewswire/ -- DataVerify today announced features available through its breakthrough DRIVE technology to help mortgage lenders nationwide comply with a host of new Fannie Mae guidelines.

Fannie Mae recently announced a new program through its Loan Quality Initiative designed to help mitigate repurchase risk among home buyers which will affect all mortgage lenders. The particulars of the program, however, also pose a number of new challenges in gathering, analyzing, and effectively using pertinent information needed to comply.

The Data Risk Intelligent Verification Engine, or DRIVE, from DataVerify is the mortgage industry's fastest growing enterprise-wide fraud management system. DRIVE analyzes borrower identity, application information, and property to be purchased, and provides a complete array of additional features tailored to the new Fannie Mae guidelines. Many large lenders are already benefiting from implementing DRIVE into their critical processes for application, underwriting, quality control, and fraud.

Here is how DRIVE addresses the new federal requirements detailed in Fannie Mae's Selling Guide Update Announcement SEL-2010-01:

Requirement: Lender must confirm the borrower's identity, Social Security Number or Individual Taxpayer Identification Number (ITIN)

Solution: DRIVE has a robust identification verification system (IDVerify) to confirm borrower identity with lower false positives than competition solutions. It also provides an "SSA Direct" service for direct verification from the Social Security Administration. DRIVE also identifies ITIN numbers with a specific condition/alert.

Requirement: Borrower occupancy description.

Solution: DRIVE provides a comprehensive analysis of a borrower's intent to occupy, including confirming existing current residence addresses and the borrower's prior purchase history. DRIVE contains very specific conditions to identify high-risk occupancy situations including "buy-and-bail" schemes and owner-occupied purchases in a predominately rental market.

Requirement: Validation of qualified parties -- Lenders must require use of General Services Administration (GSA) and Housing and Urban Development (HUD) excluded party lists.

Solution: DRIVE screens all parties on a loan through GSA, HUD and more than 15 sanction lists and excluded party lists. It also screens against the Freddie Mac ineligible list, proprietary mortgage fraud news article database and lender-provided watch lists.

Requirement: Undisclosed liabilities must be identified.

Solution: DRIVE identifies undisclosed liabilities using information from public and proprietary database sources

Requirement: Lenders should purchase and review a credit report just prior to closing to identify any additional debt taken on by the applicant since the original credit report was purchased.

Solution: DRIVE has the unique capability of delivering a new up-to-date credit report prior to closing and will automatically identify new trade lines opened or reported since the application date.

"With our DRIVE technology, DataVerify offers the most comprehensive platform for assisting lenders to comply with the GSEs loan quality initiatives available today," said Kent Johnson, Vice President DataVerify. "DRIVE's unique data mining capabilities and proven analytic rules-based decision scores provide lenders the most extensive solution to reduce fraud and risk. DataVerify has emerged as the industry leader in providing lenders with the most comprehensive platform for loss mitigation including unique access to the largest shared fraud data base in the nation."

DataVerify has been a pioneer in the development of tools, products and services to mitigate lender losses and streamline loan processing with our in-depth verification tools combined with proven analytical rules-based decision scores. Contact DataVerify at 866-895-3282 (option 3) for more information to reduce your repurchase risk.