To help protect lenders against loan buybacks and meet Loan Quality Initiative requirements, Credit Plus recently expanded its Undisclosed Debt Verifications service to offer updates from all three credit bureaus.
The company claims to be the first in the industry to offer debt verification updates from every bureau. Undisclosed Debt Verifications provide real-time monitoring into applicant credit activity from the initial credit file pull through closing.
In a release, Greg Holmes, national director of sales and marketing at Credit Plus, says by offering real-time verifications from all three bureaus, lenders have access to the information they need to help ensure they are in compliance with the requirements of government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.
Lenders can choose to receive verifications from one, two or all three bureaus. These verifications provide comprehensive information about new tradelines, inquiries, secondary reissues, bankruptcies, judgments, liens, collections, late payments and more.
As the release points out, the GSEs are now electronically validating 100% of the loans they purchase and performing reviews within 120 days. In order to meet GSE requirements, lenders must verify that an applicant hasn't incurred new debt or liability prior to closing. Applicants who have obtained additional credit prior to closing must be re-qualified if their debt-to-income ratio has changed by more than 3%.
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