That comes just after checking local records.  Then you move on to the tertiary level by vetting the references' references.  I used to do the checks.  It was just paperwork shuffle; I didn't get to provide opinion unless derogatory or unverifiable info was discovered.  Usually, when an applicant was asked to provide further data, and/or to explain discrepancies, that was left to other background investigators.  To ensure fresh eyes on any particular applicant.  If it got to that point, however, due to the added depth of checks, more scrutiny was given to any one applicant and the vetting data they provided.  The last step would be for DOJ rep to make the final call.  This process has basically not changed over the last 20 yrs or so.  Part of the EO is to vet the system and if found to be under the thresholds' increased scrutiny processing, then recommendations would definitely be made to enhance the vetting process than what is already being done.  Can't get there until we get there.