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Mitigating Lending Risk During Trying Financial Times

  • May 19, 2020
  • Topics: Uncategorized

The COVID-19 pandemic has presented many challenges, including mitigating lending risk.

For lenders, this presents a unique difficulty. Even if your clients’ income has not been affected thus far, or they have been managing their payments accordingly, it is not guaranteed to last. Your clients’ financial situations can change on a dime — now more than ever.

How can lenders mitigate this risk and maintain due diligence?

The answer: your online property technology. Mortgage underwriting tools can help lenders stay in the know and proactively find a solution, wherever possible.

Here are the tools that can help you do this.

  1. PIN Monitoring

PIN Monitoring is a unique solution from Purview that enables users to receive notifications about activity on properties in their securitized portfolio.

This will let you know in real time if something is registered on the property, such as a mortgage registration, discharge, or tax liens.

In turn, you can use this information to manage your portfolio health and monitor key risk indicators, such as power of sales and judgments, that could indicate whether a client is nearing financial difficulty.

If you do spot a warning flag, you can proactively contact the client and offer possible solutions.

Learn more about PIN Monitoring: https://www.purview.ca/wp-content/uploads/2019/08/PIN-Monitoring-Brochure.pdf

  1. Fraud Check

Fraud Check from Purview is a tool for lenders and insurers that quickly allows you to check for suspicious or fraudulent activity, including:

  • Active mortgages
  • Recent sales
  • Active liens
  • Active judgments
  • Active cautions
  • And more.

During times of financial uncertainty, like the COVID-19 pandemic, fraud check can not only help evaluate new deals that come your way, but also track any suspicious or worrisome activity on active client properties.

  1. Parcel Registers* and Instrument Images*

A Parcel Register* is the equivalent of a credit check for a property. This record contains a property description and list of instruments registered against the property within the Land Registration System of Ontario at the date of the search.

If an instrument is found on a Parcel Register*, you can take your investigation a step further and receive an Instrument Image*, which is an image of the registered document. This could include a lien, mortgage, transfer, condominium declaration, and more.

These tools can give you more insight into any instruments your client has registered so you can be empowered to assist.

*An official product of the Ontario government pursuant to provincial land registration statutes.

  1. Equity Estimate

Debt consolidation has been on the minds of many Canadians. The March 2020 MNP Consumer Debt Index found that 46% of respondents are more worried about their debt than ever before — a ten-point increase from December 2019.

If your clients do encounter financial difficulty, an equity estimate enables you to quickly view registered mortgages on title and generate an approximation of how much equity they can access.

This can help you know more when reviewing solutions with clients and do so while maintaining physical distancing.

While uncertain times, such as the COVID-19 pandemic, make mortgage underwriting and mitigating risk difficult, property tools can ease the burden — both for you and for your clients.

Have you changed how you manage risk? Share with us on social media. Purview is on FacebookTwitter, and LinkedIn.

Stay up-to-date on the latest announcements from Teranet in our COVID-19 Information Centre: https://www.teranet.ca/teranet-news-categories/covid-19-information/

We can help you leverage your Purview subscription today. Contact 1-855-787-8439 or visit www.purview.ca to get in touch.

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