New CoreLogic system automatically identifies military borrowers

CoreLogic introduced a new verification system to immediately identify borrowers in the United States military. Compliance and loan portfolio due diligence solution, Verification of Military Status, allows mortgage services to promptly and accurately verify those protected by the Servicemembers Civil Relief Act. Anyone on active duty and up to 90 days following discharge are protected from actions such as foreclosures and interest rate increases according to the SCRA. Lenders in the past paid dearly when found in violation of SCRA. In April, JP Morgan (JPM) agreed to pay $54 million for offering military members the special status in distressed mortgage servicing the SCRA allows. Bank of America (BAC) and Saxon Mortgage are also paying similar settlements. VOMS is an addition to the company’s Verification Services suite for verifying borrower data. It allows a faster process and more convenient solution to identification under the SCRA, and simply provides an electronic report that reviews the entirety of borrower mortgage portfolios. “VOMS provides a critical due diligence and compliance solution to help guide servicers in the appropriate management of SCRA-protected borrowers facing foreclosures,” said senior vice president of product management and analytics Tim Grace. In addition, VOMS will further assist in the future for these borrowers by allowing servicers to identify and update their active duty information for possible refinancing, loan modification, adjustable loan rate changes and foreclosure assessment. Write to Matthew Torres