California-based ""CoreLogic"":http://www.corelogic.com has announced the introduction of Verification of Military Status (VOMS), a compliance and loan portfolio due diligence solution.[IMAGE]
VOMS allows mortgage servicers to identify borrowers protected under the Servicemembers Civil Relief Act (SCRA), which bans foreclosures and caps interest rate increases for those on active duty, including reservists and members of the National Guard, and up to 90 days following discharge.
The new solution is being offered as part of the company's Verification Services suite for verifying borrower data.[COLUMN_BREAK]
CoreLogic explained that VOMS helps servicers avoid potential regulatory investigations, lawsuits, and costly settlements.
Unlawful foreclosures on military service members have cost mortgage companies nearly $50 million in recent settlements, according to Tim Grace, SVP of product management and analytics at CoreLogic.
""With approximately 5 million active duty families across the U.S.,"" Grace said, ""VOMS provides a critical due diligence and compliance solution to help guide servicers in the appropriate management of SCRA-protected borrowers facing foreclosures.""
VOMS lets servicers review entire loan portfolios to determine whether or not they contain loans with SCRA-protected borrowers and receive results in electronic report format.
CoreLogic conducts consumer searches via the U.S. Department of Defense to check and verify SCRA-required data, including active duty status, military branch, active duty start date, and date of discharge (if applicable).
VOMS also allows servicers to identify and take measures to update borrowers' active duty information for refinance opportunities, loan modifications, adjustable loan rate changes, and foreclosure assessment.