Kroll Factual Data Tool Aids Fraud Prevention

Posted by Orb Staff on March 11, 2009 No Comments
Categories : Residential Mortgage

Kroll Factual Data says it will offer its consumer identity verification product in conjunction with tri-merge credit reports. FactualID, launched in January 2007, is a stand-alone borrower assessment tool that helps lenders prevent fraud and reduce risk by uncovering possible identity misrepresentation, according to the company.

Kroll Factual Data now offers clients the option to automatically request identity verification when a credit report order is placed. This option adds an extra measure in verifying the borrower's true identity to counter fraud at the beginning of the loan process.

"A recent report issued by FinCEN indicated that more than half of mortgage fraud filings were filed by only 10 institutions – around eight percent of the SAR's filed referenced a repurchase demand – suggesting the filing institution did not learn of the possible fraud until a buyback was requested." says Jeff Gentry, vice president of emerging services at Kroll Factual Data. ‘Uncovering fraudulent activity at the point of origination is essential. By combining FactualID with our credit reports, we aim to help financial institutions fund accurate, high-quality loans and, ultimately, reduce losses due to fraud.’

To perform a FactualID assessment, clients provide Kroll Factual Data with the borrower's name, Social Security number and property address. From this data, clients receive a report that assesses the risk of identity and occupancy misrepresentation and also searches the OFAC List of Specially Designated Nationals (SDN), the OFAC Non-SDN Palestinian Legislative Council List (NS-PLC) and other exclusionary lists. Results are translated into a numerical risk score to provide easy risk assessment parameters that can be customized for each client.

SOURCE: Kroll Factual Data

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