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Red Flag (Fraud Alerts)

Instantly recognize the warning signs of potential fraud with our Fraud Services.

Detect Fraud on Name, Address or Social Security Number with

  • High Risk Fraud Alert (TransUnion)
  • SafeScan (Equifax)
  • Fraud Shield (Experian)

InstantID®

          InstantID® powered by LexisNexis® is the only identity verification solution that has been endorsed by the American Bankers Association (ABA). By delivering access to the industry’s most robust identity database, InstantID simplifies compliance with the USA Patriot Act.

InstantID validates and verifies a consumer’s identity information (name, address, phone, SSN (Social Security Number), and DOB (Date of Birth)) across multiple databases using a powerful proprietary search and comparison process. It also identifies potential high-risk data elements, such as prison addresses, campground addresses, disconnected phone numbers, and SSNs of deceased persons. InstantID returns the following auditable results:

  • Validation and verification of data provided by the applicant
  • Optional results from a check of Office of Foreign Assets Control (OFAC) and other government screening lists
  • Results from an SSN deceased file search
  • Fraud red flag indicators with explanations of the discrepancies that are found

Benefits

  • Critical compliance assistance to meet new account opening requirements as outlined in Section 326 of the USA PATRIOT ACT
  • Assurance that comprehensive checks have been made against a robust set of databases to authenticate customer identity and information
  • Helps reduce financial fraud and identity theft
  • Checks against current government lists of terrorists

Highlights

  • Superior data assets, including credit header data from all three national credit repositories
  • Databases have in excess of 10,000 data sources providing these updates as frequently as each data provider allows including daily, bi-weekly, weekly and monthly
  • Validates that the application data submitted is real
  • Verifies the input elements belong to a single identity
  • Identifies compromised or suspicious identities
  • Through proprietary linking technology, profiles have been built on over 400 million individuals, 280 million active and 25 million businesses

Application Data Validation Report

The Application Data Validation (ADV) Report identifies fraud risk factors within the mortgage loan application in a single report. This single concise report highlights discrepancies between the loan application data and the public records. Key verification elements that are required by secondary market investors including Fannie Mae LQI and is approved by CitiMortgage, Chase, Chase Rural, Stonegate, Trustmark, NationStar etc. are covered in the report. The fraud detection service is able to instantly verify billions of public records regarding: borrower, property, employer company data, and watch lists providing comprehensive national coverage. The 1003 data is verified against: credit helper file data, utility invoice data, single family residential, property data, USPS data, corporate & sole proprietor data, reverse phone and reverse address data and demographic and industry sources.

Application Data Validation (ADV) Report Options
ADV 40
ADV 120
ADV 130
Summary Alerts & Risk Score – Summary of findings including risk score based on an overall assessment of discrepancies on loan file, with specific alerts to help focus lender on key issues.
X
X
X
Borrower Identity – Verifies Name, SSN, DOB, Address, Phone. With probability of identity fraud including both warning message and helpful hints such as possible miss-keyed data.
X
X
X
Address History & Property Ownership – Identifies current and historic addresses to uncover risk of multiple primary residences. The report then check property ownership records for prior addresses to uncover real estate owned.
X
X
MERS Lien – Based on SSN, it checks MERS lien registry to help identify undisclosed liens.
X
X
X
Employer ID – Third party validation of employer data including company name, address, phone, website, number of employees and revenue and a reverse phone # lookup.
X
X
X
Subject Property – Checks unit numbers, ownership, refinance & sale history, selling price, recording date and identifies recent neighborhood sales and legal description.
X
X
X
FHFA Home Price Index – Checks neighborhood Home Price Index trends since purchase with a calculation of current estimated value based on FHFA data.
X
X
FEMA Declared Disaster – Checks for FEMA declared disasters in the subject property county.
X
X
Excluded Party & Appraiser License – Check individuals and companies against the excluded party lists.
X
X
AVM – Returns an estimated valuation on the subject property.
X
Estimated Income – Based on borrower’s job title, years on the job and location, returns an estimated income for that position.
X

Additional Reports

  • Occupancy Bankruptcy Report – a two part report which compiles information on current and historical occupancy and bankruptcy records. This report provides key information to assist lenders in identifying occupancy issues as required under the Fannie Mae LQI initiative.
  • Occupancy Site Report – Our nationwide network of professional field service representatives provides a full range of regulatory-compliant residential inspection services tailored to each client’s operating needs and business goals.

If you have any questions about any of the “Red Flag” regulations, please call Advantage Credit, Inc. at 800.670.7993.