The Work Number says DirectCheck, a Social Security number (SSN) verification tool, can help lenders meet new identity requirements issued by Fannie Mae's Loan Quality Initiative (LQI). The requirements are meant to ensure loans meet the government-sponsored enterprise's credit and eligibility guidelines.
Fannie Mae's new guidelines were established to improve compliance with underwriting and eligibility guidelines and mitigate repurchase risk. A primary focus of the LQI is capturing critical loan data earlier in the process and validating it before, during and immediately after loan delivery. Part of this process includes verifying a borrower's SSN.
Lenders who use The Work Number can meet the new standards by requesting a SSN verification directly against the Social Security Administration's database, the company says. The company, which recently acquired The Rapid Reporting Co., also provides Death Master checks, Office of Foreign Assets Control checks and credit-header information.
‘Identity theft is the fastest-growing white-collar crime in America," says Jay Meadows, president of Rapid Reporting. "That's evident, as DirectChek results show an alarming 5.8 percent 'no match' on over 3 million requests for identity checks, which suggests approximately six of every 100 borrowers are not who they claim to be."
SOURCE: The Work Number