CoreLogic Credco has launched Instant Merge LQ and ENCORE LQ to help lenders be compliant with Fannie Mae Loan Quality Initiative requirements.
Instant Merge LQ and ENCORE LQ were created to help lenders satisfy requirements under the new Fannie Mae LQI, an initiative designed to help lenders avoid loan buybacks.
LQI, which went into effect June 1, 2010, requires lenders to proactively verify identity and disclose the status of all borrower debts immediately prior to pre-funding of the loan, including open and closed tradelines, public records filings or any new inquiries on the credit file.
Credco's Instant Merge LQ is a solution for lenders to satisfy prefunding credit refreshes, while ENCORE LQ enables lenders to check credit, identity verification, property data, occupancy status and exclusionary list screening.
Both generate a reporting solution for underwriter review.
