WASHINGTON - The Federal Housing Administration, in its effort to reduce incidents of identity theft and fraud in FHA's single-family mortgage insurance programs, has enhanced the social security number validation procedures. Starting June 18, the agency will validate social security numbers for consistency with borrower names and dates of birth. A Mortgagee Letter 2005-25 dated May 24 from the U.S. Department of Housing and Urban Development explained that the enhancement is being provided at no cost to the mortgage lender and integrates FHA's access to various external databases including, in some cases, the Social Security Administration. Lenders will be required to enter the borrower's name, SSN and birth date at the borrower/address validation screen through the FHA Connection or it functional equivalent. The system will subsequently query various external databases to determine the validity, consistency and correlation of the data and assign them an "acceptable confidence rating" if it matches the borrower's three data elements with information contained in the other databases. An acceptable confidence rating will allow a case number to be assigned and the lender to continue to process the loan.
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, click the "Reprints" link at the top of any article.
From the June-15, 2005 issue of Credit Union Times Magazine • Subscribe!
FHA Enhances Social Security Number Validation Procedures
Want the latest credit union news?
Sign up for our free newsletter today! All the breaking credit union news and information you need to make the right decision for your credit union delivered to your inbox. For free!
Thanks for subscribing, you will start receiving the Daily News Alert tomorrow!
Comments
Resource Center
View All »
Winning the War on Cybercrime: The Four Keys to Holistic...
This white paper examines the importance of adapting to changes in fraud attacks without significant...
FFIEC Proposed Guidance on Social Media and How it Affects...
To learn how you and your institution can stay compliant with the new proposed FFIEC...
The Rise of "Mobile Commerce" and How it Affects YOU!
Could plastic cards become a thing of the past? This white paper explains what constitutes...
Key Indicators of High Performing Credit Unions
Get a complimentary demo of our loan portfolio analytics and access to the white paper,...
