The mortgage industry is undergoing a dramatic shift toward responsible lending
Tustin, CA (PRWEB) August 16, 2010
Veri-tax LLC, one of the mortgage lending and consumer credit industry's top providers of tax verification and fraud management solutions, has been acquired by Blue Horizon Capital, a private investment firm. The acquisition, completed on July 28 for an undisclosed sum, will provide additional capital and resources to support Veri-tax's growth initiatives.
Veri-tax provides electronic tax and income verification solutions that enable mortgage lenders, banks, and other issuers of consumer credit to make informed decisions about the ability for potential borrowers to repay loans. Veri-tax clients include two of the nation's top four banks, in addition to hundreds of lenders, originators and other financial institutions serving the mortgage and consumer credit sector.
As part of the transaction, Blue Horizon Capital will invest in the growth of the company and the expansion of its fraud detection, management and mitigation services. Veri-tax will maintain its name, management team, employees and headquarters. Michael Chon, managing partner of Blue Horizon Capital, will join Veri-tax's Peter Pozzuoli as co-president of Veri-tax to contribute his extensive expertise on strategic growth.
"The mortgage industry is undergoing a dramatic shift toward responsible lending," said Chon. "Through our investment in Veri-tax, we will help empower financial services institutions with the most advanced, reliable and powerful verification and fraud prevention solutions on the market."
Veri-tax's suite of solutions include:
- Income Tax Verification, which provides secure processing of 4506-T IRS forms (requests for tax transcripts) to verify a borrower's income;
- Social Security Number Verification, through an online link with the Social Security Administration's database, which also meets USA Patriot Act requirements for financial institutions to verify customers' identities;
- Mortgage Fraud Report, an easy-to-read, all-in-one report that verifies mortgage applicant information, instantly allowing lenders to catch cases of identity theft;
- Bankruptcy Verification, which provides lenders with access to comprehensive data on their applicant's potential bankruptcy history.
"With more regulation on the way as a result of recently passed financial reform legislation, demand for better income and credit verification tools is set to explode," said Peter Pozzuoli, Veri-tax founder and co-president. "This is a great day for Veri-tax's customers."
About Veri-tax LLC
Veri-tax LLC provides a full array of tax verification and fraud management solutions to the mortgage lending and consumer credit industries, helping organizations more quickly and securely process borrower income and tax documentation. Veri-tax was founded in 1998 with the goal of using advances in information technology to streamline the retrieval of IRS and SSA forms and documents needed to verify borrower loan application information, and soon became the first company to deliver IRS tax transcripts electronically to lenders nationwide. Veri-tax's suite of high-tech fraud prevention solutions helps lenders better protect themselves including secure 4506-T Processing, TFV Reports™, SSN Verification, Veri-tax Mortgage Fraud Reports™ and Bankruptcy Verification. The company is based in Tustin, California. For more information, call 1-800-969-5100 or visit http://www.Veri-tax.com.
About Blue Horizon Capital
Blue Horizon Capital is a private investment firm that invests to support the ongoing growth of successful privately owned companies. The firm partners with high-integrity management teams to provide human capital and financial resources in order to support growth, while providing for continuity of management and employees. Additional information can be found on the firm's website located at http://www.bluehorizoncapital.com.
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