First American Releases Next Generation of LoanSafe Platform

First American CoreLogic said Wednesday that it had launched the second generation of its well-known risk management and fraud detection platform, LoanSafe. The platform helps lenders and investors identify early indicators of mortgage fraud, market volatility and potential loss.

LoanSafe 2.0 examines property valuation history as well as borrower characteristics and real-estate ownership history, using First American’s substantial data spanning property, loan application and loan performance information.

Among the new features in the next-generation platform are what the company called “guided decisioning tools,” as well as enhancements to LoanSafe’s owner occupancy analysis, income affordability indicators, employer data validation and alerts for fraud schemes. Utilizing a simplified alert dashboard, LoanSafe 2.0 also provides automated prompts that alert the underwriter or loan reviewer to potential actions that may be taken to verify information in processing the application. In addition, LoanSafe can now be customized for client’s individual credit and risk tolerances, CoreLogic said in a press statement.

“Reports of suspected fraud rose by more than 40 percent last year, according to the U.S. Treasury Department’s Financial Crimes Enforcement Network, so as the market changes, so do the fraud schemes,” said George Livermore, president of First American CoreLogic.

“For example, with the decline in stated income loans, we’re now seeing and identifying more pay-stub fraud. Similarly, flipping schemes are being replaced in some markets with the new threats of loan stacking and multi-lien closing activities.”

LoanSafe’s evaluation capabilities are backed by the largest property database in the U.S., CoreLogic said, covering 97 percent of all properties, 54 million mortgage loan applications, and analytics and modeling developed for its LoanPerformance databases, which track the performance of more than $2 trillion in non-agency mortgage securities.

For more information, visit http://www.facorelogic.com.