Record-setting Fines and New Consumer Protection Regulations for the Mortgage Industry are Making News


This is why we exist“, said Lynn Mitchell, president of, “Third-Party Verification will help lenders avoid these issues and conveniently comply with new regulations“.

From the New York Times, published September 8th, 2016:

Illegal banking practices cost Wells Fargo $185 million in fines, including a $100 million penalty from the Consumer Financial Protection Bureau, the largest such penalty the agency has issued.

CFPB Director Richard Cordray said: ‘Today’s action should serve notice to the entire industry that financial incentive programs, if not monitored carefully, carry serious risks that can have serious legal consequences.Link to the full article

From FannieMae, published July 26th, 2016:

Lenders must obtain a verbal verification of employment (verbal VOE) for each borrower using employment or self-employment income to qualify. The verbal VOE must be obtained within 10 business days prior to the note date for employment income, and within 120 calendar days prior to the note date for self-employment income. The verbal VOE requirement is intended to help lenders mitigate risk by confirming, as late in the process as possible, that the borrower remains employed as originally disclosed on the loan application. A change in the borrower’s employment status could have a significant impact on that borrower’s capacity to repay the mortgage loan and must be fully reevaluated.

Alternatively, lenders may obtain the verbal VOE after closing, up to the time of loan delivery. If the verbal VOE cannot be obtained prior to delivery, the loan is ineligible for delivery to Fannie Mae. Link to the notification

Encompass and introduce Third-Party Verification (TPV) services for lenders. The last step in home loans, refinancing and reverse mortgages is only a simple click away.

What is

Third-Party Verification (TPV) adds a layer of protection in the relationship between lenders and their customers. provides third-party verification via verbal engagement and response with the buyer covering each key term and condition of the loan agreement. archives a verbal record of the buyer’s confirmation that all information they’ve provided is accurate and that they have a clear understanding of the loan agreement.

Why should lenders use helps you avoid fines and get paid.

The recent regulatory requirement (FannieMae Section B3-3.1.07) of the Verbal Verification of Employment (VVOE) is not something to be taken lightly or risk mishandling.

As the requirements increase and the regulations tighten, outsource your VVOE to a fully compliant third party that will RECORD and PERMANENTLY Archive a Recorded VVOE.

You can even eliminate the cost associated with VVOE’s all together when your engage’s Comprehensive LoanTPV package.

According to the Consumer Financial Protection Bureau (CFPB), home loans are at the top of the list when it comes to consumer provides assurance beyond the buyer’s signature to guard against future issues with the transaction. The process uncovers any ambiguities and verifies the borrower’s clear understanding of terms and conditions. is the crucial last step before closing with your client and any release of funds. provides compliance, safety and assurance at NO cost to your organization.

How does it work?

  • When a loan is ready for verification, simply click on the link in Encompass.
  • Verification results are emailed to the loan officer or closer either indicating successful verification or identifying areas of the loan agreement that need review.
  • It’s easy and there’s no new software to learn.

It’s simple to get started! Just enroll in the platform with your Encompass administrator. You can learn more about by clicking here.

More about

TPV experts since the beginning.

On January 8, 1982, the monopoly that was The Bell System was broken and split into regional operating companies that would provide local telephone service going forward.

As a result of the breakup and the subsequent brutal price wars between competing telecommunications companies, there was a significant increase in telephone slamming, which is when a subscriber’s telephone service is changed without their consent.

Because of repeated complaints from consumers and legislative actions at the state and federal levels, companies are now required to submit any verbal request for changes in service to a third-party verification (TPV) service. The TPV provider records the conversation and verifies that the person calling does indeed want to select a new long-distance carrier or in some way change their service(s).

Recognizing an opportunity, Data Exchange, Inc.. now, was founded in 1997. is a privately owned and operated customer contact center that provides business process outsourcing solutions. The company’s core competency is independent third-party verification (TPV) service for businesses nationwide. Setting the tone for the industry, provides only the best in live agent and online third-party verification.