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.
includes the following best practice solutions to minimize
FNMA LQI repurchase risks,
Loan Quality Initiative (LQI) Comparison Report
(requirements and key dates)
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”
Data comparison points include,
- Existing tradelines including public
records and collections Balances
- Payment amounts enabling easy recognition of DTI
- Inquiries and FICO scores
- Data Set changes (borrower names, addresses, Soc Sec, DOB…)
importantly, as a
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
Social Security Validation Requirement
Another significant advantage of
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
Issue date or date
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
enables Level One
Authentication to be utilized in most cases instead of the
manual and expensive SSA-89 validation.
Red Flag Requirements
The Red Flag component of
largely automates Red Flag compliance, providing both the tools and
training needed to quickly deploy your Red Flag solution including,
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
EasyRedFlag training walks you through the requirements with
simplifying the creation of the
required training and review documents – all taught in an
OFAC search and certification (Also satisfies FNMA OFAC
Required Risk Based Pricing Disclosures
includes Credit Technologies FACTA Compliance Certificate service.
Once enrolled, CT assumes the burden of complying with the
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.
each triggering event, CT automatically sends the required,
properly formatted disclosures to consumer
via first class US Mail. Each letter is
issued from you including your return mailing address
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.
MERS borrower and property searches also available
to your account, simply call
800.445.4922, option 1 or
send your request us
simplify LQI compliance, Credit Technologies has published a white
paper on FNMA LQI and tips on how to comply with the Undisclosed
more information on
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?
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.