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Updated June 7, 2010
≥Comply
is a turn-key solution to FNMA’s Loan Quality Initiative
(LQI) guidelines, FACTA Red Flag, Notice to Home Loan Applicant and
OFAC requirements bundled into a single, easy to deploy solution.
≥Comply
includes the following best practice solutions to minimize
FNMA LQI repurchase risks,
 FNMA
Loan Quality Initiative (LQI) Comparison Report
(requirements and key dates)
The
comparison report instantly analyzes virtually every component of
the initial credit report and compares that data to the LQI refresh
report, generating a color coded report detailing any differences.
The comparison process will take just seconds, dramatically
simplifying compliance with FNMA “Undisclosed Liabilities”
guidelines.
Data comparison points include,
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Existing tradelines including public records and collections
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Balances, Payment amounts enabling easy recognition of DTI
changes
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Inquiries
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FICO scores
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Data Set (borrower names, addresses, Soc Sec, DOB…)
Most
importantly, as a
≥Comply
subscriber
when last minute issues are detected (often within 72
hours of closing) any needed updates, inquiry clearance or rescore requests
are handled by our specially trained LQI STAT team and receive the very highest
priority.
 FNMA
Social Security Validation Requirement
Another significant advantage of
≥Comply
concerns the FNMA Social Security Validation requirements. Level One
Authentication meets the FNMA requirements for initial validation of
applicant social security numbers directly with the Social Security
Administration and includes,
-
Validates name to
social security number and address
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Issuing State
-
Issue date or date
range
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Provided Soc Sec
number is not contained in the SSA deceased database
All three Social
Security Administration databases including
Issued SSNs, Deceased SSNs
(whereby Social Security benefits have been
applied for) and the Social Security Number, Name
and Address database are validated as part of Level One
Authentication. This
enables Level One
Authentication to be utilized instead of the
manual and expensive SSA-89 validation.
 FACTA
Red Flag
The Red Flag component of
≥Comply
largely automates Red Flag compliance, providing both the tools and
training needed to quickly deploy your Red Flag solution including,
-
Level
One Authentication provides all the automated tools required to
detect FACTA Red Flags
including a fraud risk score, in an easy-to-read, color coded
report.
-
EasyRedFlag training walks you through the requirements with
fill-in-the-blank templates
simplifying the creation of the
required training and review documents – all taught in an
easy
Webinar format.
-
OFAC search and certification (Also satisfies FNMA OFAC
search/certification requirements.)
 FACTA
Required Consumer Score and Notice to Home Loan Applicant
Disclosures
≥Comply
includes Credit Technologies FACTA Compliance Certificate service.
Once enrolled, CT assumes the burden of complying with the
FACTA
required disclosures. Specifically,
-
At the time of enrollment, you are provided a Compliance
Certificate verifying that Credit Technologies is responsible
for issuing the required FACTA disclosures on your behalf.
-
Upon
each triggering event, CT automatically sends the required
disclosures to consumer
via first class US Mail. Each letter is
issued from you including your return mailing address
alerting
you to any address mismatch as required by FACTA.
-
In the event of a State, lender, GSE or FTC audit, you simply
provide the auditing body of a
copy of our certificate and refer
them to CT for any needed audit documentation.
-
Coming soon
– MERS borrower and property search
To add
≥Comply
to your account, simply call
800.445.4922, option 1 or
send your request us
via email
To
simplify LQI compliance, Credit Technologies has published a white
paper on FNMA LQI and tips on how to comply with the Undisclosed
Liability guidelines...request
a copy
For
more information on
≥Comply or
any Credit Technologies product or
service, please call us toll-free at 800.445.4922. We'll be
happy to answer any questions you may have. Not a member yet?
-
Join
Now.
Thank you for
considering Credit Technologies.
This information information is an overview of
FNMA and FACT ACT requirements and does not contain the complete text of the act
or guidelines, nor
can it be construed in any way as legal advice. There is no guarantee
written or implied as to the accuracy or completeness of the
information contained in this document. Credit Technologies, Inc.
cannot provide legal advice on this or any other matter. Please
consult your compliance or legal department to ensure your compliance
with appropriate GSE requirements and State and Federal laws.
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