CoreLogic Credco has brought to market a suite of pre-funding risk evaluation products that the company says instantly verify credit, application and fraud data in an easy-to-read report. The product suite, branded as FinalCheck, is designed to help lenders satisfy government sponsored-enterprise (GSE) requirements, reduce repurchase risk and increase loan delivery confidence.
The FinalCheck suite consists of three data verification products: CreditCheck, which performs a ‘gap’ analysis on credit information between pre-approval and pre-funding; AppCheck, which searches against proprietary CoreLogic loan application databases and the Mortgage Electronic Registration System (MERS) for undisclosed loans; and FraudCheck, which verifies that neither the borrower nor loan participants are on a Department of Housing and Urban Development (HUD) or other investor exclusionary list.
‘The introduction of the FinalCheck suite is in direct response to recent changes in GSE prefunding requirements,’ explains John Bauer, senior vice president of credit and transportation services for CoreLogic Credco.
Using the Mortgage Bankers Association's origination forecasts for next year, CoreLogic Credco estimates that 672,000 loan applications will have their debt-to-income ratio increase by more than 3% between pre-qualification and pre-funding, which, the company says, puts those loans at risk for rejection or eventual repurchase.
SOURCE: CoreLogic Credco