If a borrower has liens against their property, it may impact your underwriting decisions; if it's filed against collateral they want to use to secure a credit product with you, the other lender's claim might supersede yours in the event of a bankruptcy, leaving you with no recourse. And even if you don't secure your accounts with collateral, knowing that they have other secured credit products may indicate that yours would be a lower priority for them when struggling to make payments.

LoanPro's Smart Verify tool helps prevent this by searching for pre-existing liens against a business, as well as notifying you of new liens that might signal financial difficulties, helping you make informed choices when extending credit. This article will explain how to sign up for and use lien monitoring; for information on filing your own liens, check out our lien filing article.

Sign up and configuration

Before using either tool, you'll need have it configured in LMS. Reach out to your normal LoanPro contact, and they’ll be able to discuss pricing and get you started with signup.

These 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.

Lien search and monitoring

Just like with lien filing, the details here will vary depending on your configuration preferences, but the process will go something like this:

1. An agent or automation triggers a search. If you’re automating the process with ongoing monitoring, the Automation Engine or Quick Actions can be configured to search for liens accounts on a regular cadence. (You can even specify that accounts in a certain group, like those with collateral saved, should be checked more often.) You can streamline ad hoc searches with Agent Walkthroughs or Quick Actions to guide agents through the UI.
2. LoanPro searches for liens. Regardless of what triggered the verification, LoanPro will run a search for UCC liens, using business IDs to search through lien databases. The results of that search (either a positive match or no) are automatically sent back to LMS.
3. The borrower is updated in LoanPro. After the search, a note will be added to the customer saying whether a lien was found. If there was a positive match, it will be saved as a PDF in the account's documents page.
4. LoanPro performs any other automations connected to the search. LoanPro can then carry out any other steps you’d like to perform, like moving the account along in your origination process or notifying an agent.

By leveraging LoanPro's lien search and tools, you can reduce credit risk while maintaining operational efficiency.