"The First Choice in Credit & Screening"

28. June 2016 12:06
by mthomas


28. June 2016 12:06 by mthomas | 0 Comments


July 1st Deadline

On June 23rd, the IRS issued a memorandum to all IVES participants outlining new compliance requirements. Effective for all requests received after July 1st, 2016 all clients will need to re-validate by having the responsible representative of your company verify the following: Name of Company President, CEO, Managing Member, or any other responsible party acting on behalf of the client Last four digits of the social security number of the responsible party Company EIN (employer identification Number) Company full legal name Company primary physical address Failure to comply with the above IRS compliance requirements will cause a service disruption for all transcript requests. To comply by the IRS deadline of July 1st, 2016 a representative of our company may be contacting each of you to complete a re-verify form. In addition please complete the attached attestation addendum for compliance purposes

User Attestation Form

In addition to the responsible party requirements as outlined above the IRS is also requiring that each employee with access to IRS transcripts meet a minimum verification process as outlined below: full legal name date of birth current residential address social security number (SSN) the company-issued email address TaxReturnVerifications.com reserves the right to request the user list verification at any time in response to any IRS security audits. Please feel free to contact us with any questions at 615-250-2005 or COMPLIANCE@CICCREDIT.COM

1. September 2010 22:08
by mthomas

CIC News update

1. September 2010 22:08 by mthomas | 0 Comments

Credit Radar free trial is over, if you would like to add it back to your credit report for just 1.75 please call your account Representative or 800-352-5882 to enable credit radar for your company.

As a reminder to all CIC Credit clients when submitting supplements, updates and verifications please include the borrowers authorization You may do this by uploading the document from the request screen.

In observance of Labor Day, our offices will be closed on Monday, September 6th.  Our offices will re-open on Tuesday, September 7th at 7:00am EST.  Thank you.

19. August 2010 01:45
by mthomas

How to comply with key elements of the Fannie Mae Loan Quality Initiative

19. August 2010 01:45 by mthomas | 0 Comments



Income     MERS     Property     Employment    iDentity     Evaluation

How to comply with key elements of the Fannie Mae Loan Quality Initiative

This bulletin summarizes key Fannie Mae requirements and highlights how our verification services enable our clients to fully comply.  Mortgage participant report is coming late September 2010


Fannie Mae Loan Quality Initiative Requirement

IMPEDE Verification Service Features

Social Security Number

  Identify issue

  Resolve issue


ü  Complies

ü  Complies


See ID Investigation Report

See SSA Form 89 Verification Report

Validation of qualified parties

ü  Complies

See Mortgage Participant Report

Borrower Identity

ü  Complies

See ID Investigation Report

Identification of property unit number

ü  Complies

See Subject Property Report

MERS report for undisclosed liabilities

ü  Complies

See MERS SSN Lien Report

Borrower Occupancy

  Identify issues


ü  Complies


See Address History Report


1. Fannie Mae Borrower SSN Requirement

    Highlights from Fannie Mae FAQ:       

Data Verification Service Features

}  Lender may use existing tools from various vendors to identify potential SSN issues including:

}  Invalid format

}  SSN not issued

}  Borrower age/issue date discrepancy

}  SSN associated with deceased person

}  Our ID Investigation Report enables lenders to fully comply with this LQI requirement.

}  Additional checks which are performed include:

}  Social Issued in Last Three Years

}  Social Issued After Age 18

}  Social Reported Only with Different Name(s)

}  Social Reported Only with Different Address(es)

}  No Name or Address Reported with Social

}  Can lender use 4506-T to validate SSN?

}  No.  IRS only checks to see if borrower name matches SSN within 2 digits

}  Our ID Investigation Report enables lenders to fully comply with this LQI requirement

}  Our report does not use IRS data to validate SSN. 

}  We utilize multiple sources to see if the SSN is valid and is associated with only one name, including credit header data, SSA valid number file, SSA death master file and other borrower records. 

}  Lender requirement to resolve SSN issues:

}  If the SSN issue persists, the lender must verify the SSN and name with the SSA

}  Our SSA Form 89 Verification enables lenders to fully comply with this LQI requirement.

}  Our report enables lenders to easily submit the borrower authorization and receive back the SSA verification results in a clear, concise report.

}  Fully complies with LQI requirement. 



2. Fannie Mae Excluded Parties Requirement

    Highlights from Fannie Mae FAQ:

Data Verification Service Features

}  Requirements for Excluded Parties check:

}  Ensure that parties to the mortgage transaction are not on either of the excluded party lists

}  Ensure potential employees are not on the excluded party lists

}  Ensure that the employees of any third-party service provider are not on the excluded party lists.

}  Confirm that the status of employees and third-party service providers with respect to the excluded party lists has not changed.

}  Who must be checked against watch lists: 

}  Any person or entity with critical influence on or substantive control over any function relating to:

}  The origination or servicing of a mortgage

}  Companies or individuals involved in a mortgage transaction;

}  A person with management or supervisory responsibilities within a seller’s or servicer’s company

}  Our Mortgage Participant Report enables lenders to fully comply with this LQI requirement:

}  All names are searched against the LQI mandatory lists and the lists required under the Patriot Act:




}  The input list can include all participants on the loan including individuals and companies

}  Lenders receive both a summary report indicating the status of each participant and a detailed report if there is a full or close match. 

}  Lenders can submit lists of all employees and third party vendor companies and their employees:

}  These lists can be checked once, or scanned daily to ensure a parties status has not changed with respect to the excluded party lists. 

}  Continuous monitoring greatly simplifies the task of ensuring compliance.  Lenders need only submit a short list of unique participants with each new loan and the resulting loan level report confirms both the loan level list and the “master” list are cleared. 

}  The Mortgage Participant Report provides additional information on any appraiser submitted, not only do we check that the appraisers, reviewers and supervisors are not on the excluded list, but we check the status of their license.

}  Exclusion types:

}  Any party listed on the GSA excluded party list, regardless of exclusion type, agency, or “cause and treatment” would be considered an excluded party, and the loan would be ineligible for delivery to Fannie Mae.

}  For example, a party to the transaction who is excluded from participating in HUD multifamily programs or excluded from participating within a narrowly defined HUD geography would be considered by Fannie Mae as an excluded party and the loan would be ineligible for delivery to us. The exclusion would apply to all Fannie Mae products/transactions secured by properties in all geographies.

}  Our Mortgage Participant Report enables lenders to fully comply with this requirement.  

}  The lender is presented with a three part report, part one displays all input names and whether there was a match.

}  Part two of the report includes detailed information on a possible match.  The detailed report enables lenders to view all details from the watch list to quickly review and resolve false positives. 

}  Part three of the report includes detailed license information on any appraiser participants showing the status of their license. 



3. Fannie Mae Borrower Identity Requirement

    Highlights from Fannie Mae FAQ:       

Data Verification Service Features

}  Required ID verification elements (consistent with their requirements under the US Patriot Act) include:

}  Name

}  Address

}  TIN

}  DOB

}  Not on any government terrorist watch list (OFAC, FBI)

}  Our ID Investigation Report enables lenders to fully comply with this LQI requirement. 

}  Our report verifies identify information including:

}  Name, Address, SSN, DOB and OFAC, FinCEN (includes FBI lists) all verified against public records including:

}  Credit header data, SSA valid number file, SSA death master file, utility bills, courthouse records  and other borrower records 

}  Additional information is verified including:

}  Phone

}  Confirms all information associated with just one individual

}  Checks for suspicious/ transient address, phone

}  Checks for a USPS valid address



4. Fannie Mae Borrower Unit Number

    Highlights from Fannie Mae LQI:       

Data Verification Service Features

}  Property unit number must be included:  

}  Unit number required on mortgage note

}  Loan rejected by Fannie Mae if unit number not provided

}  Our Subject Property Report enables lenders to fully comply with this LQI requirement. 

}  Our report verifies the unit number is consistent with public records and the USPS

}  The property report verifies many other key data elements:

}  Verifies the property exists

}  Verifies current owner

}  Verifies recording date, to highlight risk of flipping

}  Verifies brief legal description

}  USPS standardized address

}  Prior ownership

}  Property characteristics

}  Assessment, current taxes

}  Lists 5 recent neighborhood sales 





5. Fannie Mae Borrower MERS Requirement

    Highlights from Fannie Mae LQI Tips:       

Data Verification Service Features

}  Lenders must take steps to proactively identify undisclosed liabilities, one part of that process can be: 

}  A Mortgage Electronic Registration System (MERS®) report can be run to determine if the borrower has undisclosed liens and/or if another mortgage is being originated

}  Our MERS SSN Lien Report enables lenders to fully comply with the check of the MERS system for liabilities:

}  The report returns the results of a searches the MERS® System using only the borrower/co-borrower’s SSN. 

}  This returns all liens active/inactive registered with MERS irrespective of the property address, where the SSN shows up against a borrower.

}  The report returns all available details on the lien, including servicer and originator information.


6. Fannie Mae Borrower Occupancy Requirement

    Highlights from Fannie Mae FAQ:       

Data Verification Service Features

}  Requirement to verify misrepresentations with respect to occupancy: 

}  Lender is responsible for identifying misrepresentations with respect to intent to occupy;

}  For example, in a refinance transaction of a primary residence, if the borrower indicates a current address that is different from the property address, the lender should investigate and obtain additional documentation as appropriate.

}  If the borrower purchased a primary residence and soon thereafter purchased another primary residence, the lender should obtain documentation that confirms that the home most recently purchased will be the borrower’s primary residence.

}  Our Address History Report enables lenders to easily investigate borrower related addresses:

}  The report searches billions of data records to identify addresses currently and historically associated with the borrower to help detect misrepresentations.

}  The databases include: credit header file data, utility invoice data, property data, USPS data, telephone records, demographic sources and borrower records.

}  The report provides the lender with a clear picture of addresses associated with the borrower and the duration the two can be linked. 



Fannie Mae requirements and FAQ can be found at: https://www.efanniemae.com/sf/lqi/

23. April 2010 01:11
by mthomas

How IRS Verifications Prevent Fraud

23. April 2010 01:11 by mthomas | 0 Comments

How IRS Verifications Prevent Fraud

Among the many problems that contributed to the housing market implosion of 2007-2010 was that of unsubstantiated income claims on mortgage applications. In addition to the other variables, this misreporting (sometimes innocent, sometimes fraudulent by design) resulted in people getting mortgages that they could not afford. Today, mortgage lenders are making much more widespread use of IRS Form 4506-T, and it is also a good tool for verifying income for other reasons, including loans, employment and financial planning.

When signed by a taxpayer, Form 4506-T authorizes the Internal Revenue Service (IRS) to release transcripts (not actual returns or copies) showing previous tax returns, W-2 data and 1099 information to a third party. This third party can be a lender, employer or even one's accountant. The great majority of requests for tax transcripts, however, come from home lending institutions and/or real estate agents and firms. Government guidelines for federally guaranteed mortgages now require Form 4506-T to be filed at two different points in the application process.

Bulk ordering

The IRS charges a fee for Form 4506 (without the "t"), because this form requests actual photocopies of returns. This is often a lengthy process, as the IRS allows itself up to 60 days to fulfill these requests. Although there is no fee for Form 4506-T, it is costly and time-consuming for individuals as well as financial institutions to process large numbers of requests. Various companies have formed to process bulk orders of these forms with the IRS, and the government has established advantageous guidelines for doing so. In many cases, requests are fulfilled within 24 hours, although the guidelines allow the IRS up to 48 hours to respond to bulk requests. It can take from 10 to 60 days to receive a reply from the IRS when you file the forms yourself.

Clearly, any company claiming a same-day turnaround is being deceptive, as the guidelines are clear. The best tax verification firms have no need to be deceptive as their records and results are easy to demonstrate. A good tax verification company will also work with you and your company to ensure that the paperwork is all filled out correctly, minimizing rejections and maximizing efficiency. Form 4506-T must be filled out completely and correctly, including the taxpayer name(s), Social Security number(s), current and former addresses, and the tax years requested. For transcripts that will be sent to a third party, the form must be received within 120 days of the date it is signed by the taxpayer.

Technology at work

Authorized bulk vendors process millions of requests every year through the IRS system's various data processing centers. As would be expected of companies doing this professionally, leading firms will stay on the cutting edge of technology and work with the IRS to continuously improve, streamline and optimize the processes. Because of this, the firms can usually offer a range of prices, depending on the number of records requested and other factors. With Form 4506-T one can order transcripts covering a taxpayer's 1040 personal returns, as well as 1120, 1065, W-2 and 1099 data.

The service as practiced by leading verification firms could not be easier or more straightforward. Typically, you and/or your company will establish a customer profile in the verification firm's Web-based order system. Orders are created online and Form 4506-T is uploaded directly into the company's processing system. In the usual transaction, you will likely check certain boxes or otherwise indicate what kind of transcripts you wish to obtain for verification of income. When results are obtained, you may receive an e-mail (or other contact, such as a phone call) and then log in to your account to get them. Transcripts are usually supplied in the easily-read, digital file format known as PDF (Portable Document Format) that is viewable with the freely available Adobe Acrobat Reader application.

A few lines of fine print

 You can request information from the last four tax years. Be forewarned, however, that if a taxpayer has filed for an extension or submitted amended returns, the IRS can take from six to eight weeks to integrate this data into their system. This is further incentive for you to get all relevant information up front, so that you do not waste time, money or effort in what should be a smooth, simple process. An analysis of the 4506-T program shows clearly that bad information at the beginning is the major reason for order rejection. With fraud prevention being increasingly important in home sales, employment and other financial dealings, it is thoroughly unprofessional to give the verification process anything less than full, effective attention.

In fact, non-matching addresses are the primary reason for rejection. If accurate previous address information is not included (line 4) on Form 4506-T, you may not receive the transcripts you request. Another major cause of problems is another simple, avoidable error, namely, illegible entries and obscure signatures. It is essential when filing this paperwork that all data is not just correct, but clear and readable, as well. If there is a reason to reject a request, the requestor is typically contacted via the method they indicate in their customer profile, and the problem reported by the IRS service center is then relayed. With proper use, the Form 4506-T process shows how IRS verifications prevent fraud in a wide range of financial transactions and settings.