CoreLogic Credco, a nationwide provider of merged credit reports, has launched a new data-enhanced version of ENCORE designed to improve the accuracy of loan risk detection and assessment.
With no additional cost to lenders, the ENCORE solution contains more fraud-specific alerts, optimized predictive fraud scoring models, and additional robust proprietary data.
When the Santa Ana, Calif.-based company conducted a test of more than a million loans, ENCORE, a comprehensive consumer reporting solution that delivers FCRA-compliant risk analysis for all critical elements of the mortgage application and servicing processes, identified 70% of the lender-identified fraud and more than 50% of the total foreclosure and charge-off losses within the top 10% of the scores.
The solution also produced fewer false positives, according to John Bauer, senior vice president of Credit and Transportation Services for CoreLogic Credco.
“Our latest version of ENCORE features more robust, best-in-class fraud and property data that demonstrates a proven lift in fraud detection,” Bauer said. “ENCORE provides a distinct advantage for mortgage professionals by markedly improving their ability to detect fraud.”
Some of the features that the previous ENCORE report tracked were applicant credit risk, identity verification, income and employment verification, and subject property and market data. Along with these features, the company has now added fraud alerts to the solution in order for it to detect hidden risk such as inconsistent borrower income with area property values and potential risk of non-owner occupancy.
Other features of the report include improved and easy to understand predictive scores for collateral risk and fraud scoring and new warnings such as an indicator if the borrower currently has additional loan applications on multiple properties with other lenders.
ENCORE supplements the CoreLogic Fraud Consortium Database—a proprietary database of over 90 million loans—to support its fraud prevention tools and alerts. The result is a robust, data-rich reporting solution for reliable loan risk assessment that is delivered in seconds.
“CoreLogic is continuously exploring new and innovative ways to help our customers improve their origination and servicing workflows while minimizing their risk exposure,” Bauer said. “ENCORE does just that, delivering a broad range of risk-mitigation tools for fast, accurate loan decisioning.”
