Tools to verify if a borrower is in forbearance

As the COVID-19 pandemic continues, the number of mortgages entering forbearance will no doubt continue to rise. It has become critically important to stay on top of your applicant’s status throughout the mortgage process to minimize risk and safeguard your lending business against buybacks.

Forbearance Finder from Credit Plus is a suite of solutions you can use to verify if your applicant is in forbearance.

Undisclosed Debt Verifications (UDV)

UDVs now include forbearance alerts. Obtain real-time monitoring of your borrowers' credit activities from initial credit file pull through loan closing. You can also be alerted if a forbearance appears on their credit report.

Portfolio Monitoring

Monitor your pipeline to become alerted if an applicant has been approved for a forbearance. Or monitor a portfolio of loans you are preparing to sell to stay informed of borrowers who have entered into forbearance.

Pre-Close Soft Pull

This no cost/low cost* one-bureau credit pull will allow you to see if any last-minute changes appear on your applicant’s credit report just prior to closing. If there are changes, you can order a manual Verification of Forbearance report. Remember, you must obtain consumer consent in the beginning of the loan process to order a Pre-Close Soft Pull.

Manual Verification of Forbearance Report

Temporarily available during this pandemic and only to be used as a last resort, our credit experts will conduct a manual review to determine if your applicant is currently in forbearance. Please note, these manual reviews follow a detailed process which includes conducting conference calls with lenders and borrowers and therefore require more hours and manpower to complete. Due to the time and effort involved, this verification method should only be used if all the other alternatives have been exhausted.

*Depending upon your agreement with Credit Plus, utilizing Pre-Close Soft Pull reports to monitor for forbearance may be at no charge or cost up to $1/report. Contact your Account Executive to determine your pricing terms.

Remember this best practice: Borrower Attestation

Another way to minimize your risk is to have your borrowers sign a document attesting that their income, employment and forbearance statuses haven’t changed before closing.

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