by Gail Joyce – Business Development Manager, Byte Software
Are you using EarlyCheck™? This is Fannie Mae’s new service that assists lenders in producing and selling quality loans. This service utilizes Fannie Mae’s data checks at any point in the loan business process, prior to loan delivery. It assists clients in identifying and correcting potential eligibility and/or data issues early in the submission process to reduce errors and improve loan quality. EarlyCheck™ is part of Fannie Mae’s Loan Quality Initiative (LQI).
Fannie Mae’s response to this mortgage crisis was to tighten the standards and guidelines for loans. Fannie Mae realized that they needed to provide lenders with a method that would help identify loan data problems early in the process, not at delivery. By pin-pointing issues, lenders can take steps to correct items prior to loan delivery.
EarlyCheck™ was implemented by Fannie Mae on September 25, 2010 and offers multiple data checks that include: DU findings validation, identity checks, property and occupancy checks, as well as eligibility and calculation verification. Currently, EarlyCheck™ does not include product eligibility checks (loan terms, mortgage insurance coverage, etc.), customer contract and commitment pricing checks, or pooling rules. The data checks may be enhanced as the service is fully developed. See Fannie Mae’s Web site for a complete list of data checks and more information on EarlyCheck™: https://www.efanniemae.com/sf/technology/ou/earlycheck/.
There are various methods of accessing EarlyCheck™ that depend on where the loan is in process. For loans that haven’t closed yet, there is a Web based user interface, and also direct access through a small number of loan origination systems (LOS). Today, there are only a few LOS companies with this integration, those include Byte Software, Delmar, Avista and Mortgage Cadence. For loans that have closed and are in secondary markets, Fannie Mae’s Loan Delivery system offers EarlyCheck™ to ensure quality loans before final delivery.
EarlyCheck™ provides instant, loan specific results in a simple-to-read and interpret format or in a data file for lenders. This information offers explanations of the data errors that need to be resolved by lenders.
Fannie Mae’s EarlyCheck™ also provides management reporting capabilities. These reports help managers monitor the usage of EarlyCheck™ across their pipeline of loans. Reviewing the types of loan errors helps stop recurring issues, improving process management.
At this time, Fannie Mae is not charging a fee for EarlyCheck™ or requiring its use.
EarlyCheck™ is becoming a vital tool for lenders. The ability to access it via the Web or more directly from within an LOS makes it easy for lenders to quickly verify the loan and then act accordingly; depending on the EarlyCheck™ results. To access EarlyCheck™, contact your Fannie Mae representative.
About Byte Software
Byte Software, founded in 1985 by mortgage professionals, is a leading provider of mortgage software solutions for banks, credit unions, and mortgage brokers. Byte Software products streamline the processes used by mortgage professionals, allowing them to focus on generating additional business and revenue. Byte Software is a wholly-owned subsidiary of CBCInnovis, a leading provider of real estate settlement services and fraud prevention solutions. Byte Software provides EarlyCheck™ integration. To learn more about Byte Software visit www.bytesoftware.com or call 800.695.1008.