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Advanced Data Reports Its Jobless Borrower Index Rose 0.8% in 2016

Index measures the percentage of borrowers that were unemployed within seven days of their scheduled mortgage closings

Milford, Pa., January 20, 2017--Advanced Data Corporation, a mortgage industry leader in enterprise-wide fraud prevention and enhanced verifications, has announced that the Advanced Data-Jobless Borrower Index (AD-JBI), was 0.71% in the fourth quarter of 2016, compared with 1.01% during the same period a year earlier. For 2016, the AD-JBI increased an average of 0.8%, compared with 1.01% in 2015.

The Advanced Data-Jobless Borrower Index, AD-JBI, reflects the percentage of borrowers that were unemployed within seven days of their scheduled mortgage closings. “Lenders that fail to take every precaution to insulate themselves from doing business with borrowers that won’t be able to repay their loan, perhaps because they were unemployed at the time of their mortgage closings, are exposed to serious penalties and buyback risk,” said Allen Johnson, CEO of Advanced Data Corporation.

The index reached a high of 4% in the second quarter of 2011, and hit a threeyear low of 0.53% in the fourth quarter of 2013, as well as 0.54% in the fourth quarter of 2012. Under Consumer Finance Protection Bureau rules that took effect in 2014, a lender makes must a good faith effort to ensure a borrower has the ability to repay the loan.

“Lenders face many regulatory burdens, and that scrutiny will continue to increase in 2017, which can make ensuring that every borrower meets the basic parameters of a loan more difficult. But there are automated platforms that can eliminate the risk that the AD-JBI measures. In addition, they can generate efficiency and make the origination process more profitable for their financial institutions,” said Johnson.

Since 2011, the regulations that lenders are expected to operate under, and the penalties for failing to comply with them, have become more severe. The AD-JBI has trended downward, meaning that lenders are learning to deal with this issue, and reduce their risk. However, the resources regulators have at their disposal to identify infractions are greater than ever, so the risk that a lender that fails to abide with the “Ability to Pay Rule” will be identified and face possible penalties is still relatively high.

About Advanced Data

Advanced Data is recognized as the standard for enterprise-wide mortgage data integrity, specializing in fraud prevention and enhanced verifications. Its proprietary technology is integrated with loan origination systems, and the firm offers a SaaS platform for clients that prefer a custom solution. Its services include eTax Verification Form 4506-Ts, streamlined verifications and re-verifications of employment, fraud reports, multiple levels of social security number verifications, AVM plus property inspection, and flood zone determinations. Advanced Data’s proprietary Fraud Report identifies each loan’s fraud risk before and after funding. The firm prides itself on delivering superb customer service, hiring experienced employees, and developing customized, sophisticated technology. It’s one of the only firms in its sector to employ an in-house development group, which ensures its technology provides a competitive advantage to clients and can be customized to their needs. For more information, visit advanceddata.com.

Press Contacts:

Matt Strickberger
OnPoint PR and Consulting LLC

Annette Noonan
Compliance and Verification Division
Advanced Data

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