Spotlight on the Power of Income & Asset Reverification
The reverification component of quality control continues to be in the spotlight as investors work to ensure the record high volume of new originations include accurate income and asset information. Earlier this year, Fannie Mae highlighted best practices for income and employment reverification in their Quality Insider publication. Providing a complete overview of the benefits of a reverification tracking system, this communication also addressed optimization of the underlying verification data in order to minimize errors, misrepresentation, and fraud risk.
Pushing Reverification to a New Level
In today’s digital age, it is important to capture relevant data whenever possible. As a point of reference, Fannie Mae suggests tracking all dates pertinent to the reverification process, including date sent, expected receipt, follow-up, second attempt, and actual receipt date. Peripheral data is likewise extremely beneficial to the reverification process. Comprised of key participant information, such as branch location, loan officer, underwriter, and employer of record, this data simplifies further analysis and operational improvement. Summarization and investigation into discrepancies is similarly facilitated by an expanded dataset, while also providing more effective oversight and operational controls.
Fannie Mae took verification practices a step further on June 9th when they issued Servicing Guide Announcement (SVC-2021-03). This guide update allows third-party reverification processes to be utilized when aiding borrowers in default. With numerous borrowers nearing the end of their forbearance period, the need for streamlined processes, including automated verification of income and assets, is more important than ever. These vital services can now be completed by a third-party provider. Their services can be deployed to reverify information represented on Mortgage Assistance Applications, which is the precursor to receiving and completing a Borrower Response Package (BRP).
Expanding Reverification Alternatives
Managing reverification no longer has to entail tedious manual processes that are inefficient and yield haphazard results. Quality Mortgage Services automated the reverification process several years ago with the introduction of their game-changing QC Verify solution. Originally created exclusively for internal use by the QMS team, this automated alternative to reverification by fax and mail was so effective that QMS released an independent version in October of 2020.
This revolutionary answer to industry reverification needs is presented to users through a cloud-based, secure portal. QC Verify not only facilitates loan level verification and data validation, but also aggregates results so lenders are able to track inconsistencies and identify trends in misrepresentation, as well as patterns indicative of fraud. In addition to paving the way for third-party providers in the QC and reverification space, QMS offers a unique product structure that allows lenders to select the depth and scope of their individual reverification strategy. This approach entails multiple levels of QC reverification as follows:
Traditional method – The industry standard for reverification as offered by third-party QC and audit providers. As a premier partner in quality control, QMS is well versed in regulation, agency guidance and investor requirements associated with reverifications, and includes this expertise in all services. This option is included in our client's audit fees.
Unlimited attempts to reverify – Under this scenario, the lender has the option of paying for additional reverification attempts. Each attempt is designed to meet a lenders’ unique preferences for frequency, intervals, and mode of reverification, including mail, phone, or fax. In partnership with QC Verify, QMS now offers additional attempts after second attempts are made to validate verifications and increasing the client's verification success rate. Through this option, clients are now able to hire the QC Verify team to provide a thorough follow up for additional attempts to provide higher success rates as required by the investor agencies.
Sophisticated tracking and analytics – Lenders can now opt to pay for direct access to QC Verify’s reverification tracking component, a function that allows lenders to identify, manage and analyze data that is accumulated during the reverification process.
As our industry continues to evolve and innovate in response to record high origination volume, unceasing regulatory change and pandemic crisis, partnering with a provider that genuinely understands the mortgage business is crucial to your success. Quality Mortgage Services has long-standing industry experience and a proven track record in delivering a boutique approach to technology innovative. Contact us today at www.qcmorgage.com to find out more about how QC Verify can help you improve and innovate the value of reverification.