Industry News

Demand rises for real estate fraud prevention tool

Borrower income verification service sees surge in requests

Demand for a service used to verify borrowers' income on real estate loan applications has climbed more than 300 percent over the past four months, according to AppIntelligence, a provider of data integrity, fraud prevention, risk assessment and compliance tools for the residential lending industry. Used to verify income for an individual, the 4506-T is a form sent to the IRS to request a transcript of a tax return. In response to the growing need for loan fraud detection tools, AppIntelligence in July developed and implemented an electronic service for processing the forms. Mortgage professionals submit their request to AppIntelligence, and the company processes the request and performs a qualify assurance check before electronically submitting it to the IRS. The transcript is obtained within days, versus the six to 10 weeks it takes to obtain a copy of a complete tax return, according to the company. When the service initially launched in July 2004, AppIntelligence said it rece...