ClearPro ™ Aims to Build Consumer Confidence and Fight Mortgage Fraud
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TORONTO, March 16, 2021 (GLOBE NEWSWIRE) – Honesty is the best policy when it comes to buying a home, a message that seems to go through most Canadians, according to a recent Equifax survey on mortgage fraud. However, less than half (45 percent) of survey respondents trust their broker to fill out the necessary forms on their behalf, with 29 percent admitting they don’t know if they should.
Fraud in the mortgage industry has damaged brand value, corporate reputation and affected customer confidence in recent years. To stem these recent developments, Equifax is launching a new work history filtering tool called ClearPro ™ to help mortgage brokers, prime brokers and brokerage owners identify fraudulent activity and patterns within their businesses.
“Mortgage industry leaders need to be a trusted choice with consumers,” said Carl Davies, Fraud and Identity Manager at Equifax Canada. “In today’s digital world, if an agent or broker who represents you commits fraud, the cost to reputation is incalculable. Trust is shattered. ClearPro is a sophisticated background screening tool that can help maintain consumer confidence in the mortgage process and reduce costs associated with fraud.
ClearPro does this by checking multiple data sources to confirm three important metrics:
- Credit Report Database. ClearPro accesses Equifax’s strong data assets, including our proprietary credit report database, to verify anomalies in an individual’s financial and credit history.
- Identity. ClearPro is an identity verification solution that verifies input information with Equifax data assets to identify and confirm any misuse of name, address, phone numbers by an agent or broker.
- History. ClearPro searches current and historical negative media, international and national publications, and sanctions lists, including international and government agencies. If a match is found with an employee, agent or representative, it is validated and confirmed.
“The decision on how to proceed with a reported person is up to the organization,” Davies added. “Our goal is to eliminate bad actors, which in turn will build credibility and trust, thus building trust with customers. Mortgage fraud needs to be taken more seriously.
Mortgage fraud is defined as when a person – a consumer, mortgage broker or agent, real estate agent or lawyer – distorts, lies or exaggerates information to obtain a mortgage that would not have been granted had the truth been given. been said.
ClearPro is one example of how Equifax is helping Canadian businesses and their clients get the best life from their finances.
Foster Confidence and Educate Consumers Other survey results also revealed the need for the mortgage industry to engage in consumer education regarding mortgage fraud:
- 76 percent say lenders should do more to protect them from fraud and identity theft
- When asked if it’s okay to boost your annual income when applying for a mortgage, 16% of millennials and 9% of the general population said yes, a significant drop from 23% of millennials. and 12% of the general population in 2019..
- Four in ten agree that mortgage fraud is riskier for the lender, but they will end up paying with higher interest rates (44%) and mortgage fraud is a growing problem (40%)
- 40% fear their mortgage information could be used by an identity thief to take out a loan in their name
- 14% of millennials surveyed said they weren’t completely truthful about applying for a credit or loan vs. 7% nationally
- 11 percent say mortgage fraud is a victimless crime (a legal offense to which all parties consent and no party is harmed); this number was higher among millennials surveyed at 16 percent
- 9% admit they weren’t quite truthful in applying for a loan
Equifax surveyed 1,540 Canadians aged 18 to 65, February 5-7. A probability sample of same size would give a margin of error of +/- 2.5%, 19 times out of 20.
About EquifaxAt Equifax (NYSE: EFX), we believe knowledge is the engine of progress. As a global data, analytics and technology company, we play a vital role in the global economy by helping financial institutions, businesses, employees and government agencies to make critical decisions with greater trust. Our unique blend of differentiated data, analytics, and cloud technologies drive insights to make decisions to get people moving. Based in Atlanta and supported by more than 11,000 employees worldwide, Equifax operates or has investments in 25 countries in North America, Central and South America, Europe and the Asia-Pacific region. For more information visit: Equifax.ca
Source: Equifax Canada