The Red Flags Rule
As of November 1, 2009, Compliance is Mandatory for All Mortgage Entities
Effective January 1, 2008, Sections 114 and 315 of the Fair and Accurate Credit Transactions (FACT) Act – also known as the Red Flags Rule – were implemented. The new Red Flags Rule requires financial institutions and creditors–namely mortgage lenders and brokers–to establish and maintain an identity theft prevention program. Compliance is mandatory for all mortgage entities as of November 1, 2009.
Your Compliance Obligation
The Red Flags Rule requires you to implement an identity theft prevention program, a “written program to detect, prevent, and mitigate identity theft in connection with the opening of a covered account or any existing covered account.” The federal government has enacted a strong enforcement policy for this and other regulations, sending out teams to perform compliance audits of mortgage brokers and lenders. Fines and penalties for non-compliance are severe. Find out what the new rule means to you and how our Red Flag Solution can help you comply with the new regulations quickly and easily.
Our Red Flag Solution
Our comprehensive Red Flag Solution includes:
- ProScan ID: Applicant identity verification
- Instant Merge: Merged credit reporting solutions
- ProScan XL: Expanded watch list search
- ProScan IQ: Monthly fraud reporting
New Additions:
- ProScan Alert: Identity fraud alert
- ProScan Index: Identity risk score
- LoanSafe: Loan risk analysis
- Red Flag Summary Report: Summary of consumer ID verification information (FREE exclusively with ProScan Alert and ProScan Index)
