Equifax has announced the availability of its Spectrum Verification Services Platform, which strengthens lender confidence by streamlining the verification processes through underwriting, quality assurance and closing. Equifax developed Spectrum to help lenders gain efficiencies and improve overall loan quality production, which helps mitigate loan repurchase risk. Fully automated, Spectrum rapidly delivers loan-level verifications by combining unique data assets with integrated workflow processes to reduce fraud, improve overall loan quality and cycle times, avoid capacity issues, and reduce costs. Spectrum also provides real-time access with intuitive ordering and tracking screens to efficiently deliver the most current and accurate data.
Verification services currently offered through Spectrum include: employment and payroll income via The Work Number—Equifax’s proprietary database of 210 million-plus employer-direct payroll records, IRS tax transcripts (4056-T), identity and social security number authentication, verification of deposits, and verification of hazard insurance coverage.
Spectrum enables the lender to order a full array of verification reports through a single, intuitive Web interface, or through direct system integration. A system-driven workflow assembles the verifications using both database content and information collected and audited manually by trained verification specialists. For several clients, Spectrum has demonstrated clear efficiency gains and cost savings over in-house processing.
Additionally, Spectrum features Undisclosed Debt Monitoring (UDM), which is the mortgage industry’s only service that continuously monitors and distributes daily alerts of new loan applicant activity initiated during the pre-funding stage of a loan. UDM reduces risk and protects lenders from repurchase demands and unsalable loans related to inaccurately reported debt-to-income ratios.
“Mitigating loan repurchase risk is a significant issue for lenders today,” said Michael Kuentz, senior vice president of Equifax Verification Services. “Through the level of transparency into borrower financial health that Spectrum provides, we are empowering lenders to simultaneously increase the production of quality loans and reduce compliance concerns.”