Interthinx's loan-level fraud risk tool, FraudGUARD, can assist lenders in complying with Fannie Mae's new Loan Quality Initiative (LQI) guidelines, the company says.
According to Fannie Mae, the LQI, which was introduced in Fannie's Lender Letter 2010-03, will promote improved loan delivery data that is fully reflective of the terms of the mortgage. The LQI will also help ensure that the loan meets the credit and eligibility standards, pricing guidelines and other requirements of the selling guide. A primary focus of the initiative is on capturing critical loan data earlier in the process and validating it before, during and immediately after loan delivery.
Interthinx says its FraudGUARD tool can help services automate much of the process.
"The LQI requires lenders to validate borrower identity, Social Security numbers, undisclosed liabilities and inclusion on the [U.S. General Services Administration] or [Department of Housing and Urban Development] excluded-party lists," says Gayle Shank, vice president of product development for Interthinx. "More than 50 alerts within FraudGUARD can help lenders comply with those requirements and reduce the potential for a repurchase request."
Shank uses as an example the area of undisclosed liabilities, saying FraudGUARD helps lenders scan for additional loans secured – or in the process of being secured – by the same borrower or property.
The compliance deadline for the new guidelines is June 1.