Rapid Reporting Sees Increase In Income Verifications

Rapid Reporting Verification Co., a Fort Worth, Texas-headquartered provider of income- and identity-verification products for mortgage lenders, found that usage of IncomeChek, its income-verification tool, has increased by 157% between January 2007 and January 2008.

This upsurge has come at a time when originations throughout the industry are fewer than in previous years – indicating that both lenders and investors are focusing on reducing mortgage fraud and generating higher quality loans, while also recognizing the time savings and efficiency of receiving reliable income information electronically in data format, the company explains.

‘Lenders are becoming aware that over 60 percent of mortgage fraud involves income or identity misrepresentations, and they know that matching a borrower with proper loan terms is more effective when income is confirmed,’ says Jay Meadows, CEO of Rapid Reporting. ‘Additionally, lenders understand that law enforcement is becoming increasingly reluctant to take action when lenders fail to take necessary precautions to protect themselves from fraud.’

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