One of the biggest challenges with mortgage e-closings is the potential for fraud. With closings now being handled remotely via the Internet, how do lenders and closing agents know that the person at the other end of the network really is who he says he is?
To help solve this challenge, Pavaso has introduced a new tool called IDMAXX that uses the people in a borrower's network to validate the borrower's identity. Further, it asks those contacts to rate the borrower via a series of questions that address various aspects of the consumer's character.
The tool is currently in beta and being offered to users free of charge until the end of this year.
Through this tool, a borrower can send a request to his network of friends and colleagues asking them to validate his identity and answer a set of questions. The system takes into account the type of relationship the reference has with the consumer and the length of that relationship, Pavaso says.
IDMAXX then collects the scores provided by the references and generates an average score for each category. To prevent possible ID fraud, borrowers can input their driver's license number.
‘One of the most common concerns regarding e-closings is the ability to verify the identity of the consumer,’ says Mark McElroy, CEO and president of Pavaso, in a release. ‘Because that individual may not be sitting directly across the table, stakeholders want to be sure the consumer is who they say they are. Connecting the character reference aspect to identity validation really kills two birds with one stone. The consumer can validate his or her identity for the lender, the real estate agent and the title agent while also gathering the necessary references to paint a clearer picture for the lender as to the character of the potential borrower.’
Pavaso points out that with its Digital Close solution, consumers can enter their signatures and initials prior to closing, thus tying this information back to the consumer and enabling stakeholders to visually validate them at the closing table.
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