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Equifax launches borrower misrepresentation solution for hidden debt

Equifax, a provider of information solutions, has launched undisclosed debt monitoring solution, a borrower misrepresentation solution for hidden debt.

Georgia-based Equifax said lenders who use its solution can now gain access to an exclusive insurance program, offered through Arthur J. Gallagher & Co.

Equifax added that customers using its solution can leverage Gallagher’s risk management solutions to safely originate loans in today’s marketplace.

According to Equifax, by covering losses tied to loan repurchases resulting from undisclosed debt, this solution enables lenders to reduce taxable loan loss reserves and improve the confidence level of originators, investors, and mortgage insurers in the underwriting process.

Arthur J. Gallagher & Co. senior vice president Justin Vedder said teaming with Equifax has led to the market introduction of a unique program capable of setting lenders on a profitable path to reduced loan default exposure and lower loss rates.

"For lenders focused on industry best practices and investors who value superior mortgage underwriting, this latest industry solution provides the analytics, process and protection critical for sustaining responsible growth," added Vedder.

Equifax Mortgage Growth Initiatives leader Steve Meirink said through their relationship with Arthur J. Gallagher & Co., they have found a simple, yet unique way to bridge a gap in the mortgage market by offering lenders a ground-breaking solution that can help lower loss severity rates, reduce reserve requirements and restore long-term confidence in the mortgage origination process.