Loan Quality Debt Monitoring
Secure loan quality debt monitoring
Prevent last-minute loan fallout while meeting Fannie Mae’s loan quality initiative
Securing a mortgage loan is a significant financial commitment for borrowers and lenders.
Any change to a borrower’s debt between the time the loan is approved and the time it closes can delay, and possibly prevent, a loan from closing. This can result in significant revenue loss for the lender. We have designed our Loan Quality Debt Monitoring (LQDM) solution with this in mind.
By delivering actionable alerts when a borrower’s credit profile changes during the “quiet period” between the initial credit report pull and loan funding, LQDM protects against loan fallout, buybacks, or having to sell the loan at a loss through a “scratch and dent” scenario. All while also meeting Fannie Mae Loan Quality Initiative (LQI) guidelines.
Ensure peace of mind
Real-time alerts reduce the risk of new debt impacting the loan closing. Plus, you can feel secure in meeting GSE and investor loan quality guidelines while mitigating the risk of money lost to loan fallout.
Accurate results across all credit bureaus
Feel secure with the knowledge that your borrower’s credit account is being monitored on all three credit bureaus. You'll be notified immediately if a change occurs on one, two, or all three bureaus.
Fully integrated with Encompass
Cotality has partnered with ICE Mortgage Technology to integrate 13 core solutions critical to the underwriting process into Encompass Partner Connect, including AutomatIQ Borrower LQDM to subscribe, unsubscribe and receive alerts/notifications.
Ensure peace of mind
Real-time alerts reduce the risk of new debt impacting the loan closing. Plus, you can feel secure in meeting GSE and investor loan quality guidelines while mitigating the risk of money lost to loan fallout.
Accurate results across all credit bureaus
Feel secure with the knowledge that your borrower’s credit account is being monitored on all three credit bureaus. You'll be notified immediately if a change occurs on one, two, or all three bureaus.
Fully integrated with Encompass
Cotality has partnered with ICE Mortgage Technology to integrate 13 core solutions critical to the underwriting process into Encompass Partner Connect, including AutomatIQ Borrower LQDM to subscribe, unsubscribe and receive alerts/notifications.
Secure, scalable, and intuitive interface
Our secure and intuitive web-based interface seamlessly integrates into the current loan process for maximum protection. Simply preset debt monitoring to the day the credit was run and high, medium or low default.
Stay ahead of credit profile changes
LQDM provides risk protection prior to closing a loan to ensure the overall loan quality. This will reduce last-minute credit issues and help improve loan salability post-close. This also meets Fannie Mae’s Loan Quality Initiative.
Real-time alerts to credit profile changes
LQDM scans the borrower’s credit profile and delivers real-time alerts on any changes that may affect your lending decision. Potential changes are investigated, documented and resolved before they become an issue.
Monitor 1, 2 or 3 bureaus at one time
Choose which bureaus you want to monitor. You can monitor 1, 2 or all 3. It can also be defaulted to high, medium or low as an account setting (if the order is placed manually, that setting can be overridden based on the specific request).
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Real-time alerts to credit profile changes
LQDM scans the borrower’s credit profile and delivers real-time alerts on any changes that may affect your lending decision. Potential changes are investigated, documented and resolved before they become an issue.
Monitor 1, 2 or 3 bureaus at one time
Choose which bureaus you want to monitor. You can monitor 1, 2 or all 3. It can also be defaulted to high, medium or low as an account setting (if the order is placed manually, that setting can be overridden based on the specific request).
Configured to your specifications
LQDM monitors more than just new inquiries and trades. Configure each account to pick up additional credit attributes like balance and payment increases. And with daily notifications, you'll stay ahead of any credit changes affecting the loan.
Reduce the human touch
Create an automated workflow via our dynamic integrations with Encompass (ICE), Blue Sage or DarkMatter.
FAQ
What types of credit attributes can LQDM monitor?
LQDM can monitor more than just new inquiries and new trades – each account can be configured to pick up additional credit attributes like balance and payment increases. This helps lenders stay ahead of credit changes that can impact the closing or salability of the loan.
How long does it take for monitoring to begin?
Depending on the credit bureau ordered it can take up to 24-48 hours to start or stop monitoring. Alerts will begin once the bureau acknowledges monitoring has started and they will end once the bureau confirms monitoring has ended.
Can CoreLogic Credco identify credit activity prior to a debt monitoring order being placed?
At the time a debt monitoring order is placed, the user has the ability to select a “look-back” or “start date” up to 118 days in the past. This allows the lender to capture any credit activity during the quiet period of the loan process while reducing the cost of their overall fall-out by ordering monitoring later in the loan process.
What are some of the differences between credit bureaus that a lender should be aware of?
The main differences between each credit bureaus debt monitoring product would be Price, Inquiry Suppression, locked or frozen file policy, length of total monitoring period.
Does a lender have the ability to suppress or mask their own inquires so they don't generate alerts?
Each credit bureau has a different policy when it comes to suppressing self generated inquiry alerts. Experian will only surpress self-generated alerts on a "go forward" basis. They will not surpress any alerts during the look-back period. Equifax will mask all alerts but we need to provide the subcode from which credit is being pulled. The lender needs to obtain a client specific sub-code from their credit vendor and provide that to us at the time of onboarding. TransUnion will not surpress any alerts.
Can I monitor a locked or frozen credit profile?
Each credit bureau has a different policy when monitoring a locked or frozen file. Experian will reject a monitoring request if the borrowers credit profile is locked or frozen. TransUnion and Equifax will monitor a locked or frozen file.
How can we help you?
Let's get this conversation started! Our team is here to provide you with more information and answer any questions you may have.
Trying to reach us by phone?
Get in touch with our sales team at (866) 774-3282. We're here Monday to Friday from 7 a.m. to 5 p.m. CT.
Looking for support?
Visit our dedicated support page to find support for all our products.
