Undisclosed Debt Monitoring (UDM)

With concerns over loan repurchases still overshadowing the mortgage market, the industry is adopting innovative solutions to prevent the origination of stated liability loans and make losses associated with undisclosed debt a thing of the past.

By developing Undisclosed Debt MonitoringTM, Equifax offers a simple, yet unique way to help lower loss severity rates, reduce reserve requirements and restore long-term confidence in the mortgage origination process.

Undisclosed Debt Monitoring reduces your loan repurchase risk and keeps your closings on track by continuously monitoring borrower files for increased credit activity during the quiet period between the original credit file pull and loan closing. 

Proceed with confidence - gain more visibility into borrower activity

There's a blind spot or "quiet period" that occurs during the mortgage origination process - the time between the original credit file pull and the closing of the loan. 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 this period.

Don't get blindsided

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 activity that may represent potential risk associated with mortgage loans in their pipelines.

• Streamline Underwriting
  Streamline underwriting and quality control efforts with fresh insight into credit activity, allowing you to close low-risk loans more efficiently.
• Reduce Costs
  Reduce costs associated with process bottlenecks and closing disruptions.
• Improve the Borrower Experience
  Improve the borrower experience by proactively addressing and resolving potential issues prior to closing.
• Immediately Improve New Mortgage Loan Vintages
  Immediately improve new mortgage loan vintages by reducing costs of repurchasing "broken loans" and limiting long-term exposure to delinquent or defaulted loans.
• Facilitate Compliance
  Facilitate compliance with industry standards for loan approval that address verification requirements such as identifying undisclosed liabilities.