There was a 12.4% year-over-year increase in fraud risk at the end of the second quarter of 2018, according to Corelogic’s most recent Mortgage Application Fraud Risk Index.
As growing concern for mortgage fraud haunts the financial services industry, CoreLogic has announced a new function to its LoanSafe Fraud Manager solution.
LoanSafe Fraud Manager is a fraud mitigation solution that utilizes loan application information to identify mortgage fraud risk.
The new addition, Blended Reissue, will enable investors to gain additional insight into loans they intend to purchase, reduce costs and improve efficiency of their pre-purchase reviews, according to the company.
CoreLogic’s Principal of Fraud Solutions Strategy Bridget Berg explained that because home prices are rising, and demand is strong, most mortgage fraud in this type of market is motivated by bonafide borrowers trying to qualify for a mortgage.
“Investors typically do not have easy access to all relevant loan data when ordering fraud reports to approve the purchase of a loan – which can unnecessarily hold up the funding of quality loans,” Berg said.
Blended Reissue aims to provide controlled coordination of the fraud review between parties, simplifying the transition of important information between the originator and the investor, according to the company.
“With the introduction of our Blended Reissue functionality in LoanSafe Fraud Manager, investors will now have much greater insight into which fraud alerts were initially triggered and cleared during the origination process, allowing them to more quickly approve a purchase or spot potential fraud, helping them save time and reduce costs,” Berg concluded.
