Industry News

One-stop safeguard against mortgage fraud debuts

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Rapid Reporting Verification Co. and Magellan Lender Services LLC will partner to provide lenders with a one-stop identity and collateral verification service to combat mortgage fraud. Under an agreement announced Monday, Magellan will verify collateral information submitted on loan applications, and Rapid Reporting will provide borrower-related verifications using IncomeChek, the company's income verification tool, and DirectChek, Rapid Reporting's identity verification application. According to an industry database, there was a 30 percent increase in loans involving suspected mortgage fraud in 2006. The most common type of fraud involved falsified employment histories and exaggerated income, the Mortgage Asset Research Institute reported. Magellan's cascading automated valuation model enables users to get maximum hit rates and valuation accuracy needed to effectively detect fraud, the company said in a press release. Rapid Reporting's IncomeChek confirms and verifies borro...