AFI Resources: Aides "Pre-funding Quality Assurance Managers" Move Front and Center in Combating Mortgage Fraud prior to funding.
Boca Raton, Florida., Dec. 12 /National Press Release/ -- Mortgage Fraud.....It's a problem! - it's one of the fastest growing white collar crimes in the United States. For the fiscal year 2005*, FBI statistics reported over $1 billion in reported losses – doubling from $429 million for 2004.
Many lenders still offer "stated income" and other limited documentation mortgages initially designed for self-employed applicants, these loans are being misused and have been dubbed "liar loans" by industry critics, stated-income mortgage programs allow applicants to by-pass standard underwriting requirements for W-2s or copies of personal and corporate income tax records. Instead, the loan officer or broker simply takes the applicants "word" that they earn enough to qualify for the mortgage, and the transaction proceeds to closing.
Often lenders will ask borrowers to fill out what is known as an IRS Form 4506T along with their other mortgage documents. The 4506T form authorizes the lender and/or investor providing the money for the mortgage to obtain transcripts from the IRS summarizing income and tax data, for up to four prior tax years. The form must be signed by the borrower and has a limited life span of only 60-days after the date of signing, after which the form expires.
Until now, the process of faxing in 4506T requests to the IRS and obtaining transcripts has been paper-based and courier driven; making income verifications too slow to fit into lenders' highly automated loan underwriting systems. Lenders have limited the use of 4506T forms as a way to perform quality-control checks on pools of closed mortgages.
AFI Resources - a leading national verification company, has re-launched its' improved income verification service http://www.etaxrecords.com/. "We have worked hard with our development team and the Internal Revenue Service to overhauled a key income verification tool used by lenders; making it fast, safe, easy, and very efficient to pull up electronically; confidential income tax information of borrowers for up to the past 4 years. The resulting improvements allow "Pre-funding Quality Assurance Managers" to use the 4506T as an anti-fraud verification tool, in pre-funding, when it counts." stated David Munoz, of AFI Resources, Inc.
AFI's http://www.etaxrecords.com/ provides transcript tax data usually within one business day in an electronic format processed directly through the IRS main database. More lenders are likely to run etaxrecords income verification before closing; even on loans to applicants who are not self-employed or using stated-income programs. This secure and timely tool has brought the "Pre-funding Quality Assurance Manager" to the process earlier than ever before equipped with current accurate information prior to closing the loan, one of their key detection tools will be etaxrecords.com and the processing of the 4506T form as a verification tool.
AFI Resources, invites you to set up an account with http://www.etaxrecords.com/, perform a targeted audit on recently closed loans and have etaxrecords process your 4506T forms....we think you'll be surprised at what the results will show you about your borrowers. Limit your exposure to fraud and "buy backs" with this simple step.
About AFI Resources: A leading national provider of income and identity verification services for financial institutions, faster and more secure than ever. For additional information visit website: http://www.afiresources.com/
*Statistics provided by the FBI dated December 2005
Corporate Contact:
David Munoz
AFI Resources, Inc.
561.988.2530
mailto:david@afiresources.com
Tuesday, December 12, 2006
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