Background Checks: Protecting the Mortgage Servicing Industry

Background Checks: Protecting the Mortgage Servicing Industry

150 150 Aoife O Carroll

aspen irecordCompliance pressures, increasing costs, and other issues can make it difficult to find peace of mind in the mortgage servicing industry. With the industry standard background check and proof of service, however, Aspen iRecord® makes things easier. We give service providers the tools to control and manage vendors and work orders and help field service professionals streamline the process of inspection and preservation. Associating every background-checked vendor with a unique ABC#, Aspen has helped solve an industry-wide problem. GSEs and servicers, NAMFS, and field services vendors have adopted and endorsed the Aspen iRecord® solution. This robust solution addresses the specific problems facing the mortgage field service industry:

  • Exposure to fraud
  • No clear line of sight to the individual(s) who worked on your property and whether they posed a risk to consumers,
  • No generally accepted set of requirements
  • Cost of multiple checks
  • Confusion and risk associated with a lack of common standards
  • Significant dollar leakage

The Aspen Background Check Solution

With Aspen iRecord®, mortgage servicers, service providers, and field service professionals win. Our solution addresses:

  • cost control and recovery
  • vendor oversight
  • reputational risk
  • compliance risk
  • quality
  • community safety

What’s Covered by the Industry Standard Background Check?

The industry standard background check resulted from collaboration between Aspen Grove Solutions and an industry working group set up in 2013. They agreed on a background check that covers the following:

Social Security Number Verification

The background check company verifies the applicant’s social security number to determine whether the social security number has been used fraudulently. They also identify locations where an applicant has lived that they did not list on their application.

Felony & Misdemeanor County Search 

The background check company conducts a county-level search for felonies and misdemeanors. They do not include infractions and traffic violations.

Sex Offender Database Search (State & National)

This covers a state-specific registry that contains information on sexual offenders who are obliged to register in the state in which they reside

National Criminal Record File Search

This searches the database of fugitive files and government watch lists, sex offender registries, state and county criminal record repositories, state departments of corrections, and administrative offices of the court.

Federal Criminal Search

The federal criminal search checks the U.S. District Courthouse. Bank robbery, bank fraud, and kidnapping are among the federal criminal cases that could be uncovered.

Global Sanction Search

The U.S. and foreign database sanctions that this search covers include Office of Foreign Asset Control (OFAC), FBI Most Wanted List, Terrorist Exclusion List, Denied Parties, and World Debarred Parties Lists.

Levels of Compliance

Once the background check company conducts all searches and completes the background check, the applicant is classified according to four individual compliance levels:

  • IC01: This is the highest level of compliance. The client tolerates certain minor crimes and convictions, but the applicant must have a clean record for at least a decade within the criminal charges screened for.
  • IC02: This is the level below IC01. The client is more tolerant of certain crimes and types of convictions, but the applicant must have a clean record for between five and ten years for the criminal charge categories screened for.
  • IC03: The client has a greater tolerance of specific crimes and conviction types, but the applicant must have a clean record for between two and five years for the criminal charge categories screened for.
  • IC04: The highest tolerance level of crimes and conviction types.

How It Works

You can use Aspen iRecord® simply to order a background check, but take full advantage of Aspen’s solution by adopting its proof-of-service technology. The first step is to secure a background check. So how do you do this?

  1. Register with Aspen iRecord® and choose a background check company.
  2. Submit a contact for ABC# and background check, with consent.
  3. Once the background check is completed, it is adjudicated by the background check company.
  4. View the contact’s individual compliance (IC) result.
  5. Release the result to the contact’s Aspen account.
  6. Share compliance through network connections.
  7. The individual uses the ABC# to check in on site at the property.

Once the field service professional has been background checked and received their ABC#, they can be identified when they check in on site without revealing any personally identifiable information (PII). This means your network of field servicers can demonstrate their compliance in a confidential manner. After they have checked in, they update property condition questions and agree to a code of conduct. From the servicer and service provider’s perspective, Aspen’s proof-of-service technology improves oversight, accountability, monitoring, and risk management. Then, they can use our powerful iAnalytics tool to analyze the results.

The Benefits of Aspen’s Proof of Service Solution

Demonstrating proof of service with Aspen iRecord® offers benefits for mortgage servicers, service providers, field service professionals, and consumers. The system is backed by cutting-edge technology to create a streamlined process that saves time, money, and hassle.

If you are a mortgage servicer or service provider, you get the peace of mind that Aspen has defined best practice for the background check. You know you are compliant with regulations regarding the oversight of third-party servicers. You enjoy the consistency of relying on the same industry background check to satisfy different levels of compliance. You get full visibility of your supply chain with proof-of-service check-in at the property for added protection and transparency. This also limits your exposure to fraud and unnecessary charges.

From a field service professional’s perspective, one standard background check means you avoid the expense of having to get different background checks for different service providers. You know that one, accepted background check will do the job every time. You can also use Aspen iRecord® as a promotional tool to share your marketing profile

Communities are protected because only suitably background-checked individuals are permitted onto properties.

 

To Sum Up:

Aspen’s Background Check & Proof of Service Tell You:

  • Who did the work
  • Whether they were at the right property
  • When they were at the property
  • Whether they were sufficiently background checked
  • The condition of the property (10 binary questions)
  • Whether the work was done in accordance with code of conduct

You know:

  • You meet the industry standard
  • You have demonstrated level of control over third-party vendors
  • You meet standards of compliance and enforcement
  • You can answer auditor questions in a clear, documented approach

 

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