Data Facts Lending Solutions Blog

Prevent Mortgage Fraud with Soc. Sec. Verifications

by Jennifer Hamby

Mar 19, 2015 10:20:49 AM

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Did you know that 60% of Mortgage Fraud is due to ID discrepancies?! 

Identity Theft is the fastest growing white collar crime, forcing businesses to streamline and automate fraud detection and identity verification processes.  You can greatly reduce the likelihood of mortgage fraud through social security verifications

6 Ways to combat mortgage Fraud

All Data Facts credit reports are run through an Equifax SafeScan or an Experian Fraud Shield.  These comprehensive tools highlight fraudulent or potentially fraudulent information, such as, Social Security numbers recorded as deceased, non-issued, out of range or invalid.  Years of issuance of Social Security Number.  And it warns of non-residential addresses and phone numbers.  

Equifax SafeScan puts a notation on the report regardless of a hit or not.  Fraud Shield from Experian does not.  It only makes a note if it recognizes warning signs and critical discrepancies.  

Data Facts also offers a social security search.  This search will tell you everyone (in that database) who has ever been reported using that social and how many times reported.  This is a search on one repository’s data base that alerts to all the people within that data base having credit histories established as reported by creditors using a certain ss#.  

However, even a social security search will not always tell if they are using someone else’s social security number.  Why?  Because if they are using a minor child’s social security number who is not old enough to have a credit history of their own established at the repository then the bogus person will be the only person on record at the repository using the social.  This is happening frequently with foreign nationals.  The safe scan/ fraud shield may give them years the social security number was issued which should be a tip off if the person is 50 years old then their social security number should not have been issued within the last 5 years.  But, if the person is a foreigner and only recently came to this country he could have had his social security number issued within the last 5 years and still be using a minor child’s social security number.   

Data Facts also works directly with the Social Security Administration to provide Social Security Verifications to help you stay in compliance with *Fannie Mae's Loan Quality Initiative by verifying each borrower's identity and ensuring they have a valid and accurate Social Security Number.   This is the most comprehensive social security verification

Benefits of Social Security Verifications:  

  • Verifies the Social Security Number directly with the SSA
  • Easy to read report
  • Fast results showing if the Social Security Number matches the borrower

 

*Fannie Mae's Loan Quality Initiative states:

Lenders must resolve any Social Security number issues that are identified by DU or Fannie Mae's Loan Delivery System, including invalid formats, numbers not issued, borrower age/issue date discrepancies, or Social Security numbers associated with deceased individuals. If a lender cannot resolve any inconsistencies:
The lender must validate the Social Security number with the Social Security Administration (SSA). Upon positive validation of the Social Security number with the SSA, the lender must deliver the loan with SFC162. If the Social Security number cannot be validated with the SSA, the loan is not eligible for delivery to Fannie Mae.

 

Topics: mortgage fraud

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