Interthinx has developed new proprietary risk analytics based on income verification results and integrated them into FraudGUARD, its loan-level fraud detection tool.
In addition, lenders now have the ability to automatically and manually place 4506-T orders for income verification by the IRS directly through FraudGUARD. The integration and display of 4506-T results within FraudGUARD helps lenders ensure that false income information will not lead to the approval of loans with a higher likelihood of default, Interthinx says.
"Technology has made it easy to forge or procure documents that can fool even the best loan underwriters, and Interthinx has noted an increase in fraudsters using these forged documents to falsify assets and income," says Connie Wilson, executive vice president of Interthinx. "This type of fraud is dangerous, because it can make ratios used to underwrite loans virtually meaningless."
According to the Interthinx Mortgage Fraud Risk Report for the second quarter, the employment and income fraud index decreased by 33% from second quarter of 2008. The report analysis concludes the decrease in the index is due, in part, to the increased use of the 4506-T service by lenders nationwide.