Rapid Reporting’s newly unveiled 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.
To help lenders, brokers and servicers detect financial account misrepresentations and prevent mortgage fraud in this sector, a Fort Worth, Texas-based provider of income, employment and identity verifications has launched an electronic verification of deposit service.
“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,” said Jay Meadows, CEO of Rapid Reporting. “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 at play and that no account is being used on multiple applications.”
Mr. Meadows added that AccountChek covers all of those issues electronically, which reduces the chances of insider tampering or data entry errors that can lead to a problem or buyback in the future.
The company’s new financial reporting tool is designed to confirm the accuracy of borrower-provided account information as well as analyze a borrower’s financial account activity in real time and reports transactions indicative of mortgage fraud.
According to Rapid Reporting, all information is electronically and securely transferred to ensure that information is free from human tampering. Results are provided in real time and are accompanied by a comprehensive report that provides all critical information, including red flags.
“Lenders need to stay diligent about preventing fraud. With the addition of verification of deposit, all four primary entry points for application fraud can be safeguarded, allowing lenders to avert more than 60% of mortgage fraud, well before a loan progresses to the funding stage,” said Mr. Meadows.