Reduce repurchase risk and keep your closings on track.
Nearly 14 percent of all mortgage borrowers, including those with solid credit scores and debt-to-income (DTI) ratios, apply for at least one new trade line during the "quiet period"--the time between the original credit file pull and the closing of the loan.
A mere 3 percent increase in DTI during the quiet period can derail the origination process and result in costly loan repurchase demands. Undisclosed Debt Monitoring continuously monitors borrower files during the quiet period, providing daily alerts to lenders, mortgage insurers and investors about increased credit activity that may represent potential risk associated with mortgage loans in their pipelines.
Undisclosed Debt Monitoring from Avantus can help your organization:
- Streamline underwriting by identifying potential issues before closing, with daily alerts about new borrower credit activity during the “quiet period”
- Reduce costs by avoiding bottlenecks in the origination process
- Facilitate compliance with Fannie Mae/Freddie Mac 120-day credit report requirement
- Improve the borrower experience
Real-Time Monitoring - From Credit to Closing
Avantus Undisclosed Debt Monitoring scans for:
- New inquiries
- New tradelines
- New secondary reissues
- New bankruptcies, judgments, or liens
- New collections
- Late payments
- Recent utilization of existing bank cards and revolving accounts
If you would like more information about Avantus Debt Monitoring, give us a call at 800.243.0120. We look forward to hearing from you.