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CoreLogic launches product to stop short-sale fraud

The Santa Ana-based firm's monitoring solution sends lenders alerts on risky transactions.

By Amanda EdenPublished: September 07, 2010 02:59 PM

CoreLogic has launched a new service aimed at refining short-sale price models and preventing fraud – something that costs lenders about $310 million a year, according to the Santa Ana-based firm.

The Short-Sale Monitoring Solution sends lenders alerts on risky pending and closed transactions to reduce losses related to fraud and underpricing, which totals about $41,500 per deal.

The service also provides lenders with real-time access to existing transactions on short-sale properties through CoreLogic's mortgage fraud consortium.

"Prior to our solution, lenders were disadvantaged by not being able to cross reference pending loan applications on the same property," said Tim Grace, senior vice president of the company's fraud analytics division. "Our Short Sale Monitoring Solution gives lenders unique and immediate pre- and postclosing perspectives on short-sale transactions."

Additionally, the solution can identify those who are committing the potential fraud; evaluate resales for 90 days, which allows lenders to refine price models; and provide analyses of specific geographic regions, among other features.

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Readers Feedback:

I think it is a joke. The bank had made a bad loan on the onset of this file. The bank also is a major part of the collapse. Now you want to monitor a resale of a property that the lender had went out and determined their OWN independant value on that property. Based on those values and there acceptable loss tolerance the lender decided to approve the short sale. you are going to tell me we should feel sorry for the big bad banks. The only way out of this mess is to allow these properties to be short sold, picked up by legitimate investors. Get these properties back into resaleable condition and sell them at todays lower market values. This will eventually allow the market to have a solid footing , currently we keep free falling. You cannot punish a prudent and wise investor who buys the property at the correct value, has a professional construction crew that can complete the repairs efficently and cost effectively within a very short amount of time. Then monitor the sale 60 or 90 days later and believe that there could be fraud involved. America is built on capitialism and Risk. The banks have the same exact opportunity as the investors BUT are not in the business of Real Estate Rehabbing, so therefore they want to try and use scare tactics. There is nothing illegal with flipping a home or assigning a contract. What a Buyer and a Seller legally agree upon is what real estate is all about. The Banks at all times had at their finger tips all the due dillegeance available to them to not APPROVE the original loan request, instead they were greedy and made lots of money in the past. Banks still partake in capitalistic actions everyday when it comes to mortgages. The banks will buy and sell mortgages at a discount and premium based on their business model for that portfolio, should we consider this to also encroach on fraud...
Comment at 9/8/2010