Tax Return Verification Services

AN OPEN LETTER TO ALL MORTGAGE LENDERS

FACT:    Mortgage fraud is the second highest concern (after check fraud) of the FBI Financial Fraud Unit, and represents about $30 BILLION in losses annually.  This compares to $3 Billion in credit card fraud.  The Executive Director of the Mortgage Asset Research Institute reported recently that FRAUDULENT TAX RETURNS ARE INVOLVED IN 57% OF THE APPLICATIONS CONTRIBUTING TO MORTGAGE FRAUD!

Our own research clearly, but sadly, shows a worsening trend in the accuracy of tax-returns provided with mortgage application among those that provide "returns" as proof of income (such as self-employed).  When fraud is involved, losses are suffered by all involved in the lending process.  This is a national problem, AND LENDERS ARE BECOMING INCREASINGLY MORE AWARE OF A NEED FOR A SOLUTION!

These days, when lenders send the government form "4506" to the IRS to authorize release of borrowers' tax-returns, the response can take weeks.  In fact, this critical information usually arrives only after the closing!  That's why so many lenders today say they're reduced to asking for tax-return verification only for QC purposes.  This means reduced investment quality of loan… increased risk potential… increased potential for costly repurchase demands!

To combat this growing problem, K-LAK Corporation is pleased to offer you a program that will enable you to provide your customers a means in which to verify, through the IRS, income information from consumer federal tax-returns in as little as 3 to 5 days…

the "TRV Report"

(Tax Return Verification Report)

This simple solution has evolved from many months of talks with the IRS and legal advisors, talks which carefully covered issues of privacy, as well as FCRA and other consumer law compliance.  TRV processing is designed to meet all state and federal laws as well as insure the confidentiality normally associated with our credit reporting services.  This special attention to state and federal compliance as well as a high degree of consumer sensitivity and concern for privacy and confidentiality flows through to all aspects of TRV services.

Matching the TRV Report with our Residential Mortgage Credit Report (RMCR) or Merged Mortgage Credit Report (MMCR) is a natural!   Self-employed borrowers usually have special situations that require special attention for which our credit reporters have developed a strong reputation.  Matching our traditional sources, the investigative skills of our credit reporters, and the TRV information, the combination provides you with a complete, investment quality tool to hand over to underwriting to make a well informed decision.

I am aware you may have questions regarding TRV services, so please don't hesitate to call me.  Thank you, again, for your interest in our services, and I look forward to talking to you soon to answer questions, provide you with more information, or begin the process to give you the advantage of the lending safety associated with…

the TRV Report!