Early Warning Automates Home Loan Asset Verification

Early Warning, a fraud prevention, payments and risk management company, announced Tuesday (Feb. 16) its new effort to automate asset verification for home lending.

The company introduced its Asset Search and Verification service for home loans, which provides an automated way for financial institutions to search and verify borrowers. The service enables both government-sponsored enterprises (GSEs) and financial institutions to use systematically verified asset information for the underwriting and securitization phases of the loan lifecycle.

“Lenders are responsible for verifying many data points right before a loan closes or when sold into the secondary market, a process that has proven costly and time-consuming,” Ravi Loganathan, chief market development officer of regulatory solutions for Early Warning, said in a press release.

“Our Asset Search and Verification service for home loans enables this to take place immediately, saving time and money for all involved. It stands up an important utility for the industry under strict member oversight and controls per Early Warning’s consortium operating rules and also includes protections for the consumer under the Fair Credit Reporting Act (FCRA),” Loganathan continued.

By providing a way to ease the burden that comes with providing bank statements and cut down the time it takes to close a loan, Early Warning’s Asset Search and Verification service aims to ultimately simplify the application process for consumers.

The company said its service will be able to digitize the verification of bank account details in seconds, helping to do away with a manual process that could take weeks to complete and was also at a high risk of being impacted by fraud.

“Rather than depending on the borrower to accurately disclose and provide sufficient evidence of financials, Early Warning’s Asset Search and Verification service leverages bank-contributed checking, savings, money market, CD, IRA account balance and transaction data to provide a cross-bank view of an individual’s liquid assets,” the statement explained.