In all the coverage of foreclosure prevention measures, it has been difficult to call out instances of other mortgage lender news. However, starting tomorrow, mortgage brokers are required to be in compliance with what is known as the “Identity Theft Red Flags and Discrepancies Final Rule”. This is a rule that requires mortgage brokers to take more care to ensure that they are dealing with legitimate borrowers. Some of the requirements of the Red Flag rule include:

* Implement an Identity Theft Prevention Program

* ID theft training for employees (loan officers, processors, etc.)

The idea is to train mortgage brokers and their employees to look for red flags (especially address discrepancies and changes) that indicate that identity theft may be occurring. Unfortunately, since there are so many unscrupulous folks out there, it likely means that a little more effort will be required on the part of borrowers as well. However, if it means your identity is being protected, it’s probably worth a little extra effort and annoyance.