Rapid Reporting, a provider of income, employment and identity verifications, has launched AccountChek, an electronic verification-of-deposit service that is designed to help lenders, brokers and servicers detect financial account misrepresentations and prevent mortgage fraud.
According to the company, AccountChek leverages direct access to more than 10,000 financial institutions, including insurance and investment firms, to definitively confirm the accuracy of borrower-provided account information. AccountChek also automatically analyzes each account for suspicious activities that could indicate potential mortgage fraud, Rapid Reporting adds.
Â ‘The ability to verify a borrower's bank account information can make a huge impact on whether or not that borrower is qualified for a mortgage, and it's also one of the four prominent areas of misrepresentation on mortgage applications,’ says Jay Meadows, CEO of Rapid Reporting. "Verifying bank account information ensures that borrowers are being evaluated on actual cash reserves, which are especially important in a climate of record unemployment rates.
"There's also the issue of verifying that all deposits are seasoned, that account ownership is confirmed, that there is no suspicious activity or "gift money' is at play and that no account is being used on multiple applications," he continues. "AccountChek covers all of those issues electronically, which significantly reduces the chances of insider tampering or data entry errors that can lead to a costly problem or buyback in the future."
AccountChek also analyzes a borrower's financial account activity in real time and reports transactions indicative of mortgage fraud. All information is transferred electronically under highly secure methodology, Rapid Reporting notes.
SOURCE: Rapid Reporting