THEY WILL ATTACK
HOW IT HAPPENS
It’s a nightmare scenario for any lender and homebuyer: right before closing, a scammer manages to trick the homebuyer into wiring their down payment and the lender’s mortgage loan proceeds to a bogus account. Neither the lender nor the homebuyer realizes that a closing agent was hacked and now someone pretending to be them has misdirected the funds. The deal is lost, the lender loses out on business, their reputation is now in question, and the misdirected loan proceeds is an immediate financial hit to equity.
The FBI has reported $billions of losses from Internet-based crime. These losses have severely impacted lenders and borrowers, Go to (http://ic3.gov) for the latest news on Internet fraud warnings and reported trends. Dytrix has prevented nearly $5 million in lender losses from potential wire fraud. We presume every email or Internet-based communication involving the transfer of funds is likely fraudulent and must be validated.
Protects the Balance Sheet
Conducting business electronically is best when you know all parties involved. As the saying goes, “know your customers, know your counterparty”, but in today’s world, that is not always the case. In today’s business environment where information is immediately available, to be fully compliant with regulators and best business practices lenders are required to know the entities providing services to them, to make sure they are fully compliant with all regulations, and to have a clean business background.
Dytrix Counterparty Management Systems provide a customized solution for lenders, giving them the ability to organize and qualify their closing agents. This ensures safe business online and mitigates their risk with each transaction. Because we manage to lender/client requirements, we’re able to drive significant cost savings.
Our closing agent qualification process includes:
- Agent Background Review
- E&O Insurance Review – including claim limits, deductibles, expiration date management
- License Verification
- Lender Exclusionary List Check
- OFAC Check
- Compliance with ALTA’s Best Practices Framework
Our wire validation includes:
- Authentication of recipient’s identity, address, telephone number
- Validation of the wire instructions over a recorded telephone call
- A Safe Loan Closing Transaction
- On Time
- Every Time
Contact us for an assessment on how we can lower your loan manufacturing costs and protect your balance sheet.