""CoreLogic"":http://www.corelogic.com, a provider of consumer, financial, and property information and business services based in Santa Ana, California, has announced the launch of its Short Sale Monitoring Solution. The company says it's the industry's first short sale fraud prevention and pricing technology.[IMAGE]
According to a statement released by CoreLogic, the solution alerts lenders to ""risky"" pending and closed short sales to reduce needless losses related to fraud and under-pricing - $41,500 per transaction, CoreLogic estimates.
Earlier this month, the company released the ""results of a new study"":http://dsnews.comarticles/lenders-out-310m-annually-from-preventable-short-sale-losses-corelogic-2010-08-10, which found that short sale volume has more[COLUMN_BREAK]
than tripled from 2008. Because of this rapid proliferation, CoreLogic says lenders' financial losses resulting from preventable and unnecessary short sale fraud are estimated to be as high as $310 million by the end of this year.
The CoreLogic Mortgage Fraud Consortium, an industry repository of application and transaction data, represents 65 percent of annual loan applications and provides real-time access to lenders' concurrent transactions on short sale properties.
""Short-sale fraud is costing lenders $310 million a year, and those losses may increase if lenders cannot proactively identify risks in real time,"" said Tim Grace, SVP of fraud analytics at CoreLogic. ""Prior to our solution, lenders were disadvantaged by not being able to cross reference pending loan applications on the same property. Our Short Sale Monitoring Solution gives lenders unique and immediate pre- and post-closing perspectives on short sale transactions.""
In addition to matching details against other pending loan applications in the consortium database and public records for the same property, Short Sale Monitoring Solution continues to watch properties for a period specified by the lender after short sales have closed, alerting the new lender if it could be party to fraud.