First American CoreLogic Releases LoanSafe 2.0
Thirty-eight States Show Decline in Past Three Months
SACRAMENTO, Calif., May 28, 2008–First American CoreLogic, a member of The First American Corporation (NYSE:FAF) family of companies and a leader in residential mortgage data and analytics for the mortgage industry and Wall Street, today announced the release of LoanSafe 2.0, a next-generation version of its industry-leading mortgage risk management and fraud detection technology designed to help lenders and investors identify early indicators of mortgage fraud, market volatility and potential loss.
LoanSafe 2.0 provides lenders and investors with a complete multi-layered approach to fraud detection by examining the property valuation history as well as the borrower’s characteristics and real-estate ownership history. By continuously updating the largest databases of property, loan application and loan performance information from both a property valuation and a borrower demographic perspective, LoanSafe gives lenders and investors a critical tool to combat today’s fraud-for-profit and fraud-for-housing schemes. This transparent approach to identifying the risk associated with mortgage transactions is being well received by the global investment community.
LoanSafe 2.0 now provides lenders and investors with easy-to-use guided decisioning tools and LoanSafe 2.0 includes significant enhancements to owner occupancy analysis, income affordability indicators, employer data validation and alerts for fraud schemes such as undisclosed debts, also known as "loan stacking." 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.
“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,” explained 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. Our new release is designed to catch these new schemes and to give underwriters and due- diligence staff the decisioning support so they better understand the appropriate next steps when they encounter these issues,” added Livermore.
LoanSafe’s evaluation capabilities are backed by the largest property database in the U.S. covering 97 percent of all properties, 54 million mortgage loan applications, and industry-leading analytics and modeling developed for its LoanPerformance databases, which track the performance of more than $2 trillion in non-agency mortgage securities.
The LoanPerformance HPI incorporates more than 30 years worth of repeat sales transactions, representing more than 45 million observations sourced from First American CoreLogic’s industry-leading property information database. LoanPerformance HPI provides a multi-tier market evaluation based on price, time between sales, property type and loan type (conforming vs. nonconforming). With LoanPerformance HPI, users can monitor real estate trends by market, identify at-risk markets as they unfold, selectively evaluate markets by tier and fine tune investment strategies. LoanPerformance HPI is delivered through the TrueStandings® Web-based business intelligence platform, which provides instant access to real estate price trends in all of the key local markets in the United States. Data can be sorted by time period, state, county, CBSA and ZIP code.
About First American CoreLogic
First American CoreLogic, a member of The First American Corporation (NYSE:FAF) family of companies, was formed through the merger of First American Real Estate Solutions, America’s largest provider of advanced property and ownership information, analytics and services, and CoreLogic, the leading provider of residential mortgage risk management and fraud protection technology and services, and the acquisition of LoanPerformance, the leading provider of mortgage performance data and analytics. The combined companies’ databases cover more than 3,000 counties, representing 99.1 percent of the United States population, data on more than 60 million active mortgages and more than $2 trillion in loan-level non-agency mortgage securities. With more than 600,000 users nationwide, First American CoreLogic products are used by businesses to improve customer acquisition and retention, better manage credit risk, loss mitigation, securitization and investment, detect and prevent fraud, improve mortgage transaction cycle time and cost efficiency, measure the value of residential and commercial properties, identify real estate trends and neighborhood characteristics, track market performance and increase market share. More information about First American CoreLogic can be found at www.facorelogic.com.
About The First American Corporation
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of approximately $8.2 billion in 2007, it is America’s largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people’s lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Information and Outsourcing Solutions, Data and Analytic Solutions, and Risk Mitigation and Business Solutions. More information about the company and an archive of its press releases can be found at www.firstam.com.
Media Contact:
Carrie Gaska
Corporate Communications
The First American Corporation
(714) 250-3298
cgaska@firstam.com
Investor Contact:
Mark Seaton
Investor Relations
The First American Corporation
(714) 250-4264
mseaton@firstam.com
