First American Data & Analytics has launched FraudGuard Home Equity, a single-source risk management tool designed and configured specifically to help these lenders streamline their use of third-party vendors.
As mortgage rates rise and property values stay at record highs, consumers in need of cash are turning to home equity products as an alternative to refinancing. First Quarter Home Equity Line of Credit Volume increased 27% year over yearaccording to Atom Data Solutions.
FraudGuard Home Equity identifies undisclosed borrower liabilities, validates their identity, detects occupancy discrepancies, and screens all affected loan participants (including borrowers and employers) against industry debarment lists. Data is available for all residential properties in the United States
Additionally, it creates a valuation report including property type, listing status, and owner and/or condo association data. FraudGuard can be used with HELOCs and closed-end home loans.
The Consumer Financial Protection Bureau’s decade-old regulatory compliance policy holds mortgage lenders accountable for the acts of the vendors they use.
The First American Home Equity product is a customized version of the company’s FraudGuard offering, which leverages public, private and proprietary data sources to help lenders identify risk and assess overall loan quality for the home equity market. first mortgage loans. FraudGuard became part of First American Financial in the Acquisition of Interthinx in 2014.
FraudGuard Home Equity integrates with all leading loan origination systems.
“Lenders can assess the risk of a potential home loan using a centralized tool that analyzes all relevant risk categories,” said Paul Harris, general manager, mortgage loan analytics for First American Data & Analytics. , in a press release.