Optional Verifications/Content

An integral part of FirstLine Data's Third Party BestPractices^SM is providing valuable industry content that helps form the basis for well-informed decisions on third party companies. FLD adds optional verifications on an ongoing basis. Here are some of the current offerings available:

CMRA Checkpoint

With mortgage companies downsizing, the potential exists for mortgage brokers and other third parties to be working out of virtual offices instead of an actual physical location. CMRA Checkpoint is a verification of the submitted address to determine if it is actually a Certified Mail Receiving Agency (for example, a postal store). CMRA Checkpoint will help lenders determine if their applicant is housed in a virtual or an actual office.

HUD Neighborhood Watch

Includes a summary of the total HUD originations by a broker, along with any defaults or defaults and claims. The results are then broken out by the four Home Ownership Centers (HOC), so a glance will reveal in what areas the broker is originating HUD loans. Also provided will be the ratio of defaults reported against the broker as it compares to other originations within a particular HOC. A higher comparison ratio will place that broker on HUD CreditWatch status, at which point, FirstLine Data alerts the mortgage lender of their applicant's standing with HUD.

FHA Approved Broker

With the recent drastic changes in the loan products available to home buyers with limited assets for a down payment, mortgage lenders are returning to FHA products. With this move, FHA has reconfirmed their policy regarding the use of non FHA-approved mortgage brokers in the loan origination process. Only an FHA-approved lender or an FHA-approved mortgage broker, or in other words a loan correspondent, can perform FHA loan origination services; otherwise, there will be a violation of either the RESPA statute and regulations or FHA regulations.

National Sex Offender Registry Search

A search of the most current national sex offender database determines if the applicant has been convicted of sexually violent offenses against adults and children and certain sexual contact and other crimes against victims who are minors.

County/Federal District Criminal Records

When a more thorough, in-depth view of an applicant is required, turn to FirstLine Data’s county-level and federal district criminal records searches.  Felony, misdemeanor, and infraction convictions are reported and typically include court source, date of conviction, sentence date, and sentence.

Reference Verification

Using expertise acquired through years of second-effort experience and proprietary technology, FLD relieves clients of the tedious business of getting reference information from lenders and other mortgage industry companies.

Errors & Omissions Insurance Verification

Verifying the validity of E&O and fidelity bond coverage should be an integral part of approving a third party relationship. Yet due to the cumbersome nature of verifying coverage, many lenders accept the declarations page at face value. Drawing on years of verification experience, FirstLine Data’s E&OVerifier quickly ascertains policy limits, deductible, expiration date, and fidelity bond rider information if it exists.

Regulatory Agency Approval

Direct verification of approval information with government regulatory agencies including HUD, Fannie Mae, Freddie Mac, Ginnie Mae, and VA. Agencies included correspond to lender selections and type of review.

Report Score

FirstLine Data’s proprietary ReportScore^TM helps lenders evaluate the potential risk involved in entering into a relationship with a third party applicant. The Score is a calculation based upon the combined weighted average of all alerts (“red flags”) found in a report. Alerts indicate derogatory findings and/or material misrepresentations between the information submitted and the specific findings contained in a report. Each alert represents a value. For example, an alert for an expired license carries more weight than an alert for an address variance on the license. The more alerts in the report, the lower the score.  A higher score indicates fewer alerts in the report or less severe alerts in the report.