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LenderLive’s GuardianDocs Launches New Asset Validation Solution

LenderLive GuardianDocs FACTCheckDomestic-based mortgage services provider LenderLive Network, headquartered in Denver, Colorado, has announced that its GuardianDocs division has launched a solution known as FACTCheck.

The new solution is designed to help lenders validate a potential borrower's income and assets and help the lenders better determine the borrower's ability-to-repay (ATR). FACTCheck uses analytics to examine documents related to the borrower's income, such as tax returns, tax transcripts, W2s, 1099s, bank statements, and pay stubs.

Prior to the introduction of FACTCheck, underwriters had to manually review the documents regarding an applicant's assets and income, which sometimes resulted in errors or important information being overlooked. This could result in the creation of life-of-loan liability for lenders and investors if the loan loses its qualified mortgage (QM) status due to an error on the part of the underwriter.

"The best way to calculate, and then validate income, is to compare all of the sources of this information to make sure that they are ‘telling the same story,’” said Jonathan Kunkle, president of GuardianDocs. "FACTCheck ‘interrogates’ the information presented in various documents, looking for discrepancies or variances that might result in over or under calculations of income. For example, does a borrower’s pay stub reflect the same income as the W-2, or are there garnishments that need to be considered? Or does a bank statement show monthly cash flows, either in or out, that warrant further investigation?

"We have developed FACTCheck to systematically compare the historical data from the tax transcript with information indicative of more recent income, such as pay stubs and bank statements. ATR requires a lender to validate the likelihood of income sources to continue, which is impossible to do by simply looking at past history."

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.
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