The latest version of CoreLogic’s LoanSafe Fraud Manager gives lenders the ability to change fraud detection rules in minutes as they spot new trends employed by fraudsters, the company says.
CoreLogic says the Web-based fraud detection platform employs pattern recognition technology and analytics to determine which loans to review. Giving lenders the ability to change the detection rules that generate alerts allows them to adapt quickly to changing situations, without having to go through their information technology departments, the company said.
"New and sophisticated mortgage fraud schemes can emerge overnight," said Tim Grace, CoreLogic senior vice president, fraud analytics, in a press release. "We want to empower lenders to be able to stop those schemes through their own flash fraud rules and alerts."
In a white paper, CoreLogic said lenders can also adjust their internal policies and strategies for handling loans that are flagged for review, which may vary from loan program to loan program and need to be updated to adapt to changing conditions. CoreLogic says fraud analysts using LoanSafe will employ consistent, efficient procedures in investigating each loan flagged for review.
The configurable case management environment integrates with lenders’ internal and external systems, ensuring fraud analysts are presented with "the right information at the right time," the company said in the announcement.
The "next generation" LoanSafe Fraud Manager also offers new data sources, predictive analytics and best practices as reported by members of CoreLogic’s Mortgage Fraud Consortium.
CoreLogic recently reported that lenders who originate 70 percent of U.S. mortgages are now participating in the consortium, contributing loan information to a database that currently houses more than 80 million loan applications and that is growing by 8 to 10 million applications per year.
CoreLogic also offers a Short Sale Monitoring Solution that checks pending short sales against the consortium database to see if other loan applications have been submitted, issuing alerts when there’s more than one loan application pending on the same property.
The application also looks for evidence of "property flopping" — rapid resales of properties or repeat transactions in which the resale amount is much higher than the short-sale amount.
CoreLogic says the Short Sale Monitoring application is capable of uncovering patterns of unethical behavior by real estate agents and others involved in short sales, by giving lenders participating in the Mortgage Fraud Consortium the ability to track real estate brokerages and agents across multiple lender relationships.
In addition to the Mortgage Fraud Consortium, CoreLogic’s fraud detection tools can also draw on property tax records and data the company licenses from third parties including multiple listing services.
In August, CoreLogic announced agreements to license sold listings data from eight MLSs with a combined total of 82,000 members, and said it is in negotiations with more than 50 other MLSs. Sold listings data CoreLogic licenses from MLSs is utilized by LoanSafe Fraud Manager and other fraud-detection applications.