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Editing Data versus Clearing Flags

When reviewing the AppIntell confirmation page remember that there is always the option to rescore the loan. There is no charge to rescore a loan up to sixty days from initial scoring. Many users are unsure of why they should rescore loans.

 

All AppIntell products will score accurately based on the required fields, however as you add optional fields the score will be more robust. After your initial score is provided, if you have extra data elements you would like the system to score, load them into the system and rescore your loan. An example of this would be for data transfer or file upload. The LOS may not be collecting all the optional fields. Once the loan is scored you can go back into the input page and enter those fields and rescore. Or with manual entry, perhaps you do not have all the data, but once it is collected it can be added and the loan rescored. In both options by adding the additional data you will give DISSCO the opportunity to evaluate all the elements and present any inconsistencies it may find.

 

It is also important when reviewing your variances or flags to view the bullet point that identifies the data elements that have an impact on the specified flag.

 

 

It is also important when reviewing your variances or flags to view the bullet point that identify the data elements that are being used for scoring.

Volume 5, Issue 5, July 2004

EXAMPLE OF SCENARIO

If you find inaccuracies in the input data it is important to go back into your LOS or the DISSCO input page and correct the data elements and rescore the loan.

This gives the system the opportunity to score the accurate data and point out any inconsistencies that may exist with the new data. Remember this would not be an example of when you would want to use Client Adjusted Scoring. If we were to clear the flag this would impact your overall score however missing out on scoring the accurate data.

Eric reviews a loan file and notices that there was a typo for borrower one, Peter Smith. After reviewing the variances/flags Eric realizes that borrower one’s social security number was mistyped into the system and uses Client Adjusted Scoring to clear the flag documenting, ‘incorrect number loaded into system verified correct number and cleared flag.’

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We applaud Eric for researching the information and trying to use his Client Adjusted Scoring. However in this situation Eric should have corrected the input error. If it was a data transfer he should have corrected the error in the LOS and retransferred the file for scoring. Or if this was manual he should have gone to the input page and retyped the correct number in the system for rescoring. This process would allow for the system to verify the new information and make sure no inconsistencies were being overlooked.

 

The system will keep track of all data changes and track the scoring changes on the confirmation page. This link  provides the number of times the loan has been rescored and a chance for you to compare the score and data changes.

 

 

 

 

 

 

Now that you understand why you would rescore based on data changes let’s discuss Client Adjusted Scoring. First it is important to remember that the system is looking at the data that is being provided and pointing out any inconsistencies within that data through the variances/flags. Inconsistencies in the data do not necessarily mean you have a bad or fraudulent loan, this indicates that the data is not matching up or that flags are presenting high risk situations that require additional review. Based on this information, the system is designed to help you determine which loans to review by presenting scores which fall in the categories of Pass, High or Investigate. These scores are effectively the weight of the flags and these flags have suggested actions. Remember the system is analyzing the data and weighing the flags to present which ones have higher impact on your score. The suggested actions will help point you in the direction of where to research. Client Adjusted Scoring presents you with a place to document your research of the variance/flag. It gives you a place to put your findings and if you feel comfortable or can justify the variance, you can clear the flag. Clearing a flag will override its impact on the score, removing it as if the variance never existed.

To help with your investigation here our seven things to think about before clearing a flag.

                 1.  Are there data input errors that should be corrected?

                 2.  What could be valid reasons for the variance? (Example: Multiple names appearing on Social                       Security Trace, has their name changed, could their name be misspelled?)

                 3.  Do you have documentation to support these variances? (Example: Do we have a marriage                          license or have they signed a Name Affidavit?)

                 4.  Could these documents be falsified? (Example: Is this a fake license or Social Security Card?)

                 5.  Do you need to go to the source for verification of the documents? (Example: Should I contact                         the Social Security Administration to verify the number?)

                 6.  What is the risk in clearing the flag? (Example: If the person is really not who they say they are                       and the loan defaults how will this impact my company, or if the loan is sold to an investor and                       fraud is found in the file what will happen if we have to buy back the loan.)

                 7.  Are you confident that your justifications for clearing this flag fall within your company’s                         guidelines?

SEVEN RECOMMENDATIONS BEFORE CLEARING A FLAG

Eric reviews a loan file for Brenda King; she has received an Investigate score due to some identity issue flags.  The first flag indicates she is not the only name appearing on the trace information.  Eric follows the seven steps.

                 1.  Eric reviews the data and all is accurate.

                 2.  Eric thinks about reasons for this occurring. Brenda has been recently married, could it be her                       maiden and married name on the trace?

                 3.  In the loan file Eric locates a signed Affidavit of name change and a marriage certificate.

                 4.  These documents are verified and have not been falsified.

                 5.  Eric does not need to contact any additional sources.

                 6.  Due to the verification Eric has lowered the risk of accepting this loan.

                 7.  Eric feels confident in clearing the flag; the evidence supports the reason for the inconsistency                       and his decision is backed by company policies.

EXAMPLE OF SCENARIO