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New Loan Prospector Alert Feedback Messages Help Identify Inaccurate Loan Data

[April 17, 2007]

On May 20, we updated Loan Prospector to provide you with additional guidance to help you identify inaccurate data provided in the origination process as part of your quality control and fraud detection efforts. With this new guidance, you'll have more information, to you help you more informed decisions earlier in your origination process.

Identify Inaccurate Data Earlier in the Origination Process

With these changes, we updated Loan Prospector with more integrated informational messages to further help you identify inaccurate data earlier in your front-end process. You'll find these new informational messages, in the Applicable Collateral Warranties and Waivers section on the Loan Prospector Feedback Certificate indicating potential mis-representation and mis-use of data. These solutions are not intended to be a stand-alone fraud detection tool, but should be used to identify areas of concern.

New Alert Feedback Messages

Here's an overview of the new alert feedback messages you'll see in Loan Prospector:

  Rapid Appreciation Message Manufactured Housing Message Owner Occupancy Message
Description The Estimate Value of Property or Net Purchase Price reflect an appreciation in value faster than the surrounding market If the property type is not indicated as a Manufactured Home on the application but the property address is a manufactured home in the system. If "Yes" is selected under the category intend to occupy. The system will check to see if this borrower has greater than 3 owner occupied properties in the database.
Benefits This message helps you identify potential misrepresentation of the Estimate Value of Property or Net Purchase Price. This message helps you identify potential misrepresentation of property type. This message helps you identify potential misrepresentation of owner's intent to occupy subject.
Feedback location Applicable Collateral Warranties and Waivers section of Full Feedback Certificate Applicable Collateral Warranties and Waivers section of
Full Feedback Certificate 		Applicable Collateral Warranties and Waivers
section of Full Feedback Certificate
Recommended processing steps The appraisal should be carefully reviewed for this transaction. Please confirm the accuracy of the address and property type entered. The appraisal should be carefully reviewed for this transaction. Please confirm the borrower's intent to occupy the property.
Message Code Z3 Z4 Z5
Message Text Review for Accuracy: The Estimated Value of Property or Net Purchase Price submitted for this transaction may have a higher rate of appreciation than the local market. The appraisal should be carefully reviewed for this transaction. Review for Accuracy: The subject property was not submitted as a Manufactured Home; however, based on our records, the subject property may be a Manufactured Home. Please confirm the accuracy of the address and property type entered. The appraisal should be carefully reviewed for this transaction. Review for Accuracy: Application indicate borrower(s) will occupy the property as a primary residence or second home; however, our records indicate borrower(s) may have other properties identified as owner occupied. Please confirm the borrowers' intent to occupy the property.
Mortgage Type Conventional/conforming and Department of Veterans Affairs (VA) loans Conventional/conforming and VA loans Conventional/conforming loans


Additional Changes to the Loan Prospector Feedback Certificates

Based on your requests, we made minor modifications to the Loan Prospector Feedback Certificate. We are continually updating Loan Prospector to make it even easier for you to assess more loans for more borrowers. Examples include: the change of the term "repulled" to "reordered", "evaluation" to "assessment", and including the borrower's full middle name, at the top of the Loan Prospector Feedback Certificate, when entered into the system.

For more information