CoreLogic has introduced the Short Sale Monitoring Solution, which the company describes as the industry's first short-sale fraud prevention and pricing solution. The new service allows lenders to receive alerts on ‘risky’ pending and closed short sales to minimize unnecessary losses related to fraud and property underpricing, which CoreLogic estimates at $41,500 per transaction.
Short Sale Monitoring Solution provides real-time access to lenders' concurrent transactions on short-sale properties through the CoreLogic Mortgage Fraud Consortium, a repository of application and transaction data that represents 65% of annual loan applications.
To prevent short-sale fraud pre-closing, the CoreLogic solution matches details against other pending loan applications in the consortium database and public records for the same property. When a matching record is found, an alert goes instantly to the lender, recommending a decision to delay pending further investigation.
For short sales that have already closed, the Short Sale Monitoring Solution continues to watch the property for a period specified by the lender, CoreLogic explains. Any subsequent loan closed on the property generates an alert to the original short-sale lender and the resale lender, if different.
Additionally, the new short sale solution watches for and evaluates short sale resales for 90 days, enabling lenders to refine pricing methods on an ongoing basis. Another option available is a retrospective short sale analysis that allows lenders to detect fraud, assess pricing-method accuracy and pinpoint problematic geographies.