ClearPro™ aims to build consumer trust and fight fraud within the mortgage industry
March 16 2021 - 5:00AM
Honesty is the best policy when it comes to a home purchase, a
message that appears to be getting through to most Canadians,
according to a recent Equifax survey on mortgage fraud. Less than
half (45 per cent) of survey respondents, however, trust their
broker to complete necessary forms on their behalf, 29 per cent
admit they don’t know if they should.
Fraud within the mortgage industry has damaged brand equity,
company reputations and impacted customers’ trust in recent years.
To stem these recent developments, Equifax is launching a new
professional background screening tool called ClearPro™ to help
mortgage brokers, principal brokers, and broker owners identify
fraudulent activity and patterns within their businesses.
“Leaders in the mortgage industry need to be a trusted choice
with consumers,” said Carl Davies, Head of Fraud & Identity at
Equifax Canada. “In today’s digital world, if an agent or broker
who represents you commits fraud, the reputational cost is
incalculable. Trust is broken. ClearPro is a sophisticated
always-on background screening tool that can help maintain consumer
trust in the mortgage process and help to reduce costs associated
with fraud.”
ClearPro does this by checking multiple data sources to confirm
three important indicators:
- Credit File Database.
ClearPro accesses Equifax's robust data assets, including our
proprietary credit file database, to check for anomalies in an
individual’s financial and credit history.
- Identity. ClearPro is an identity proofing
solution that cross checks input information against 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, both international and domestic
publication, and sanctions lists, including international and
government agencies. If a match is found to an employee, agent or
representative, it is validated and confirmed.
“The decision on how to proceed with a flagged individual is up
to the organization,” added Davies. “Our aim is to root out bad
actors, which will in turn establish credibility and confidence,
building trust with customers. Mortgage fraud must be taken more
seriously.”
Mortgage fraud is defined as when someone – a consumer, a
mortgage broker or agent, a real estate agent or a lawyer –
misrepresents, lies or exaggerates information to obtain a mortgage
that would not have been granted if the truth had been told.
ClearPro is an example of how Equifax helps Canadian businesses
and their customers live their financial best.
Fostering trust and educating consumers
Additional survey results also revealed a need for the mortgage
industry to engage in consumer education with respect to mortgage
fraud:
- 76 per cent say lenders should be
doing more to protect them from fraud and identity theft
- When asked if it’s acceptable to
inflate your annual income when applying for a mortgage 16 per cent
of millennials and 9 per cent of the general population said yes, a
significant drop from 23 per cent of millennials and 12 per cent of
the general population in 2019.
- Four-in-ten
agree mortgage fraud is more of a risk to the lender, but they’ll
end up paying for it with higher interest rates (44 per cent) and
mortgage fraud is a growing problem (40 per cent)
- 40 per cent have
concerns that their mortgage information could be used by an
identity thief to take out a loan under their name
- 14 per cent of millennials surveyed
indicated they had not been entirely truthful on a credit or loan
application vs. 7 per cent as a national average
- 11 per cent say mortgage fraud is
a victimless crime (a legal offense to which all parties consent
and no party is injured); that number was higher among millennials
surveyed at 16 per cent
- 9 per cent admit
they haven’t been entirely truthful on a loan application
Equifax surveyed 1,540 Canadians ages 18-65, Feb.
5-7. A probability sample of the same size would yield a margin of
error of +/- 2.5%, 19 times out of 20.
About EquifaxAt Equifax (NYSE: EFX), we believe
knowledge drives progress. As a global data, analytics, and
technology company, we play an essential role in the global economy
by helping financial institutions, companies, employees, and
government agencies make critical decisions with greater
confidence. Our unique blend of differentiated data, analytics, and
cloud technology drives insights to power decisions to move people
forward. Headquartered 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
Media Contacts:
Andrew FindlaterSELECT Public Relationsafindlater@selectpr.ca(647)
444-1197 |
Tom CarrollEquifax CanadaMediaRelationsCanada@equifax.com (416)
227-5290 |
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