Loan fraud is a huge problem in the United States. According to this article, “the FBI estimates that mortgage fraud ranges from $3 billion to $6 billion per year.” This type of identity fraud can be devastating for homebuyers and homeowners alike. That’s why it’s important for a financial institution to invest in the best identity verification software for mortgage lenders so you can prevent loan application fraud!
How to Prevent Loan Application Fraud
There are many different ways to prevent loan application fraud. But identity verification software for mortgage lenders is a great start! Identity Verification Software (IVS) checks data against multiple public and private databases before approving loans or providing financial services, such as mortgages, to customers. For example, IVS best practices for lending firms include checking the applicant’s social security number against Social Security Administration records on all applicants with the same or similar names.
The best identity verification software for mortgage lenders can help reduce identity fraud and identity theft. Before a loan application is submitted to a financial institution, identity verification software can check an applicant’s background information, credit reports, and verify their true identity to confirm they are who they say they are. Identity verification software also prevents money laundering by checking customer names against lists of known criminals or suspected terrorists kept by law enforcement authorities around the world.
The best identity verification software for mortgage lenders can also help prevent false claims and duplicate applications. Identity verification software checks each claim made by an applicant against the person’s identity to verify that they are not making fraudulent statements or submitting a fake document to a financial institution on their behalf. If there is any suspicious activities, then this could be detected in time to prevent loan application fraud.
There are other ways of verifying applicant’s identities that can be done during the loan application process, too. For example, financial institution applicants may need to present a valid driver’s license or passport and sign their name on any documents submitted with the loan application so they cannot later deny making the statement or signing the document.
What Identity Verification Software Does and Doesn’t Do
Identity verification software can help reduce loan application fraud but it cannot prevent all instances of this type of crime. For example, the best identity verification software for mortgage lenders may not be able to detect when someone has stolen a person’s identity documents and submitted them with a loan application in their name. Identity verification software may also not be able to detect fraudulent activity identity theft when someone has submitted a false divorce decree or legal separation agreement that claims they are single and have no dependents.
Where Can I Find the Best Identity Verification Software for Mortgage Lenders?
To find the best identity verification software for mortgage lenders and lending firms, contact Lightico. They provide identity verification software for mortgage lenders and other financial institutions.