Because the death of a borrower fully disrupts the normal repayment process, it’s vital to verify that they are actually deceased before writing off the account. That’s why LoanPro provides deceased verification and monitoring tools. LoanPro can check individual borrowers against the Social Security Administration’s Death Master File (DMF), either through regular monitoring or an ad hoc verification.

Signup and configuration

Before using this tool, you'll need have the process configured in LMS. Reach out to your normal LoanPro contact, and they’ll be able to get you started.

The verification and ongoing monitoring processes can be customized to suit your needs and business logic, using LoanPro tools like Agent Walkthroughs, Quick Actions, or the Automation Engine to streamline or fully automate the check.

Verification process

The details will vary depending on your configuration preferences, but in any case, the process will go something like this:

1. An agent or automation triggers a check. If you’re automating the process with ongoing monitoring, the Automation Engine or Quick Actions can be configured to check accounts on a regular cadence. (You can even specify that borrowers in a certain group, like those over a set age, should be checked more often.) You can streamline ad hoc verifications with Agent Walkthroughs or Quick Actions to guide agents through the UI.
2. LoanPro checks the borrower against the DMF. Regardless of what triggered the verification, LoanPro will run a search in the DMF using the borrower's first name, last name, and Social Security Number. The results of that search (either a positive match or no) are automatically sent back to LMS.
3. The borrower is updated in LoanPro.
   1. If the borrower is in the DMF database, LoanPro will receive a DMF ID and a death date. A note will be added to the borrower: Your borrower, {Customer_Name}, was pronounced deceased on {death date}. In addition to that, LoanPro will also update fields for Death Master File ID, Death Date, Verified Death On. (Deaths before the year 2000 will only include the month and year; those after 2000 will include the date as well.)
   2. If they’re not found in the DMF, LoanPro will write a note: We are unable to confirm [Customer Name] is deceased. Please attempt this process again in one week.
4. LoanPro performs any other automations connected to the check. Depending on your business logic, you may have other steps you’d like to perform in the case of a verified borrower death, like writing off the balance or making a previous co-signor the new primary borrower.

By leveraging LoanPro's deceased verification and monitoring tools, you can ensure accurate portfolio management and compliance all while maintaining operational efficiency.